Is the Line Between Personal and Business Credit Disappearing?

Small Business Month is here, and as the rise of the gig economy and side-hustles continue we’ve seen another interesting trend — the line between personal and business credit is getting harder to see. In April’s Market Pulse webinar, our experts took a closer look at new credit trends, how small business financing is changing, and how data can help make sense of it all. Our panel also shared tips and insights to help lenders, financial institutions, and business owners feel more confident as they deal with these changes.¹

During our guest panel discussion, we heard from Mike Spriggs, Head of Consumer Insights at Fiserv and Dr. Darryl Tyndorf, Director, Economic & Analytic Insights at Fiserv. 

They explained Fiserv’s perspective on small businesses. Because small businesses make up 99 percent of U.S. companies — nearly half of the workforce — and about 44-45 percent of GDP, Fiserv heavily invests in understanding and supporting small businesses through their data insights.

Here are some of the key takeaways:

• Inflation peaked around 9.5% in 2022 and, despite declines, remains “sticky” above the Federal Reserve’s 2% target.

• Consumers and small businesses are feeling the strain from higher costs.

• Despite inflation, March spending rose (with small business sales up 1.8% from February and 5.5% year-over-year), but purchasing power is eroded by inflation.

• Fiserv adjusted their data for inflation to show the picture without price fluctuations: restaurant sales initially grew after COVID but have fallen 10.5% since May 2022 when adjusted for inflation.

• Restaurants today are performing worse than pre-COVID levels when accounting for inflation (about 4% below 2019).

• Though overall sales numbers look healthy in "today's dollars," real consumer purchasing power is lower.

• Adjusting for inflation could explain the financial pressures consumers felt at the register even if economic indicators seem positive. The ‘Nominal Average Ticket Size’ is significantly higher than the inflation adjusted ticket size, suggesting how much more consumers are paying at the register.

Finally, Spriggs and Tyndorf discussed how consumer behavior is shifting due to inflation and upcoming tariffs. Restaurant sales are impacted not just by lower traffic, but also by a decrease in average ticket size as consumers switch to cheaper, quick-service options. Grocery prices for staples like coffee and ramen are rising, signaling economic pressure on households.

Data from small businesses show that spending on essentials is growing much faster than discretionary spending, indicating consumers are preparing for tougher financial times. Businesses are advised to monitor foot traffic, customer loyalty, and pricing strategies to adapt to these trends.

Keep Your Business Goals Within Sight

Need your business run better and more efficiently? Reach out at riskadvisors@equifax.com.  

We hope you will join us for our May 2025 Market Pulse webinar taking place on Thursday, May 15, 2025, when we will discuss how global pressures are rippling through industries, consumers, and small businesses. To ask questions from top economists in real time and gain deeper insights before anyone else, you simply have to be there. 

Find our monthly Small Business Insights, National Consumer Credit Trends reports, the Market Pulse podcast, and more at our Market Pulse hub. 

Broaden your perspective with insights that inspire bold innovation, confident adaptation, and decisive leadership through our Trends and Insights resources. 

Finally, connect with us on YouTube and LinkedIn for even deeper insights.

Source:

Equifax, April 2025 Market Pulse Webinar