Slow credit access strains US middle-market growth, study finds

Fragmented payments and slow credit access are holding back some growing U.S. companies, according to a PYMNTS Intelligence and i2c study of 1,011 businesses with $1 million to $50 million in annual revenue. The research found the pressure varies by sector: technology firms use an average of 3.8 payment providers, while 26% of them report cash shortfalls at least weekly.

The study, The Emerging Middle Market: How Middle-Market Businesses Pay, Borrow and Scale, examines how companies in five industry groups use payments, credit and cash-flow tools as they expand. PYMNTS Intelligence and i2c based the report on a survey conducted from February 10 to February 26, 2026, among owners, founders, vice presidents and executive directors.

PYMNTS defines the emerging middle market as companies with $10 million to $50 million in annual revenue, together with high-growth businesses earning $1 million to $10 million that are on course to exceed $50 million within five years. The sample covered technology, financial services, goods and logistics, retail and hospitality, and professional services.

Payment complexity creates timing gaps

The findings indicate that growing companies do not share a single financing problem. Their needs differ according to how they collect revenue, pay suppliers, carry inventory and serve customers, according to PYMNTS Intelligence and i2c.

Technology businesses show the clearest link between payment complexity and liquidity stress. With the highest average number of payment providers in the study, these companies often receive funds across different timetables. That can create gaps between incoming cash and outgoing obligations, even when revenue is growing.

Financial services companies face a separate constraint. The report found that many have credit options available, but timely access remains a problem. Only 6% of financial services firms said they encountered no issues when applying for credit, and 30% said they use virtual cards mainly to obtain faster access to funds.

In that context, speed matters as much as credit availability. A credit facility or payment product may meet a company’s capital needs on paper, but delayed approval or delayed access can reduce its usefulness when payroll, supplier payments or customer obligations are due.

Sector needs diverge

Retail and hospitality companies tend to keep payment arrangements less complex, according to the study. Many in the sector, however, depend on merchant cash advances, which the report characterizes as expensive.

Goods and logistics firms use fewer payment providers and miss fewer growth opportunities than some peers, the research found. Their challenge lies in how financing systems connect with operating data. PYMNTS Intelligence and i2c said credit and payment tools often remain separate from purchase orders, inventory records and delivery information.

Professional services firms rely more heavily on traditional credit products, according to the report. For those companies, approval speed can affect whether planned projects proceed on schedule.

The report said the findings give banks, lenders, FinTechs, payment providers and business leaders a clearer view of where current products fall short for growing companies. Its central conclusion is that middle-market finance needs are becoming more specific as companies scale, with timing, integration and sector operating models shaping demand for payment and credit tools.

This story draws on original reporting from PYMNTS.