Small Business Cash Flow Trends Q4 2025: Confidence Is High, Credit Shifts Steady, and AI Continues to Rise
- F.I. Editorial Team
- 20 hours ago
- 1 min read
As 2026 begins, the latest quarterly snapshot of American small business financial health, the Q4 2025 Small Business Cash Flow Trend Report from OnDeck and Ocrolus, paints a picture of resilience, optimism, and structural evolution in how Main Street accesses capital and manages liquidity. The report, based on survey responses from nearly 470 small business borrowers and cash flow insights from over 3.4 million applicants, shows that while challenges linger, the strategies small businesses use to navigate them are evolving meaningfully.
Credit Access: Banks Continue to Lose Ground
Perhaps the most enduring theme across recent quarters, and one that continues into Q4, is the shift away from traditional bank credit toward non-bank and fintech lenders. Nearly 74% of small businesses bypassed a traditional bank when seeking financing, a number consistent with patterns observed throughout 2024 and 2025. What’s notable about this trend is its persistence: even when credit demand is strong, banks are often unable or unwilling to meet it.
Traditional banks’ shrinking share of debt inflows stands in contrast to non-bank lending activity, which continues to provide a reliable source of liquidity. Industry-level cash flow data shows non-bank loan volumes rising steadily year-over-year and quarter-over-quarter, while bank loan inflows were up year-over-year but declined sequentially, underscoring how fintech and alternative lenders are filling gaps left by more cautious bank underwriting.
For businesses, especially those in sectors like Accommodation & Food Services, Construction, and Professional Services, this means capital is more likely to be sourced from agile and technology-driven lenders than from traditional institutions.
