Research from Visa has revealed that a majority of Australian small businesses are using personal credit cards for expenses as the cost of doing business continues to mount.

The research conducted by Lonegan for Visa, found 78 per cent of Aussie business owners were using personal cards to offset business expenses.

As small business cash flow remains tight, 67 per cent of owners shared that they often find it challenging to access enough business credit. Over half (54 per cent) mentioned that the timing of payments can create cash flow issues, and nearly half (48 per cent) reported that late payments affect their daily operations.

The small biz credit squeeze

As the cost of doing business continues to rise, business owners are turning to personal finance to fill the gap. 54 per cent of those surveyed said they have accessed personal finance when business finance was unavailable.

Moreover, it’s not a temporary measure with close to half using their personal credit card (47 per cent) on a weekly basis to manage business costs.

Visa warns that the blurring between personal and business finances is a potential minefield for business owners, especially if trading conditions worsen.

Visa Oceania Head of Small Business Catherine Coulter said there is little doubt small business owners need better access to financial tools and services.

“These findings highlight how deeply intertwined personal and business finances have become for many SMB owners.

“There is a clear need for smarter payment options that give business owners greater efficiency, control and visibility – from virtual cards and expense management to digital acceptance tools,” Coulter said.

Admin headaches increase

Small business owners are also spending more time working on their books, with manual processes weighing them down. One in five business owners said they spend more than five hours each month on tasks such as categorising expenses and uploading invoices.

Coulter said the findings show the strain small businesses are under.

“Small businesses are juggling multiple financial pressures, from inconsistent access to credit through to delayed payments and time-consuming admin. These challenges don’t just slow growth; they can also increase operational risk,” Coulter concluded.

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