JERSEY CITY, N.J. – A new national survey published by Bluevine, a digital banking platform for small businesses, revealed that small business financing challenges are often driven by a gap in preparation and financial literacy rather than a lack of available capital. 

According to the study of more than 800 U.S. small business owners, 25% of their recent business financing applications were delayed or denied due to avoidable application mistakes, driving many founders to compromise their personal financial health.

While roughly two-thirds (65%) of small and medium-size business owners applied for a business line of credit or term loan in the past 12 months, the vast majority skipped fundamental preparation steps. Seventy-three percent of respondents admitted they did not research lender approval requirements beforehand; 72% failed to update their financial statements; and 56% did not check their business credit score before hitting submit.

These preparation gaps frequently force owners to rely on personal financing to keep operations afloat, with 75% of small business owners self-reporting that they used personal credit cards or personal loans for business expenses over the past year. This marks a massive jump from Bluevine’s 2025 data, where 49% of owners reported using a personal card to cover business expenses.

“Using personal credit cards for business expenses can create risk beyond utilization,” said Aditya Narula, senior vice president and general manager of lending and credit at Bluevine. “It can blur personal and business finances, limit the owner’s ability to build business credit and make tax or cash-flow tracking harder. Over time, it may constrain personal borrowing capacity for a mortgage, car loan or emergency needs. A stronger application starts before the application itself.”

Other key findings from the survey:

  • The early-stage vulnerability: Business owners whose companies are 5 years old or younger struggle the most with the process. Over half (54%) experienced issues with their most recent application, compared with just 24% of established businesses (6 years or older). Furthermore, 44% of newer owners rely on personal credit cards, and 20% use personal loans for business needs.
  • The personal toll of mixed finances: Of the 41% of owners who currently use personal credit cards for business expenses, 42% say it has negatively affected their personal finances, including increasing personal credit utilization (23%), creating household stress or conflict (16%) and lowering personal credit scores (12%).
  • Application surprises: Among the 37% of small and medium-size business owners who ran into roadblocks during their most recent application, 12% were caught off guard by how long processing took; 11% discovered their credit score was lower than expected; and 8% applied without understanding lender requirements.
  • Financing alleviates stress: Sixty-eight percent of small business owners said having a dedicated business line of credit or term loan significantly reduces their stress about covering upcoming expenses or emergencies.

“A prepared application can materially speed up the process because it reduces back-and-forth,” Narula said. “Current P&Ls, recent bank statements, accurate business information and a clean credit profile help lenders verify your business faster. The biggest unlock is consistency: When documents, revenue, ownership and credit history tell the same story, decisions move faster.”

The full report can be viewed HERE.