Small Business Owners Rely on Savings for Holiday Costs

TEMPE, Ariz., Nov. 10, 2026 /CourierPR/ -- Flute, a payments platform for growing businesses, has released its findings from "Who's Paying for the Holiday Season?", a report that surveyed 209 U.S. small business owners from August to September 2026. The survey found that 58% of small business owners will use personal savings or credit cards to cover holiday costs this year, a significant increase from the previous year. This trend is driven by the fact that holiday inventory and expenses come due weeks before the sales that will pay them back, leaving many business owners with a cash shortfall.

The report, which surveyed 209 U.S. small business owners from August to September 2026, found that 58% of respondents will use personal savings or credit cards to cover holiday costs. This is a significant increase from the previous year, indicating that small business owners are facing a substantial financial challenge during the holiday season.

The primary reason for this financial strain is the gap between when holiday inventory and expenses are due and when sales are expected to come in. Flute surveyed 185 owners across various sectors, including retail, professional services, jewelry, restaurants, and hospitality. The survey revealed that 40% of owners expect to need more cash upfront than they did last holiday season. This gap is attributed to higher inventory costs, with 36% of owners needing to order earlier than usual. Other contributing factors include shipping and fulfillment costs (32%), uncertain demand (31%), and tariffs or import costs (29%).

The report also found that only 42% of owners can fully cover holiday inventory, staffing, or seasonal costs without using personal savings or credit cards. Another 40% can cover part of it, and 18% cannot cover any of it. This means that many small business owners are in a precarious financial position, with the majority needing to rely on personal savings or credit cards to bridge the gap.

Retailers, who make up two-thirds of the respondents, have the least room to cover their holiday costs. Only 37% can fully cover holiday costs without using personal money, compared to 54% of larger businesses. Smaller businesses, with less than $250,000 in revenue, face an even tighter situation. Only 31% can fully cover holiday costs on their own, compared to 54% of larger businesses. Moreover, 27% of smaller businesses cannot cover any of those costs without personal funds, which is 2.7 times the rate for larger businesses.

The report also highlights that if cash becomes tight, 33% of owners would dip into personal savings first. When it comes to cutting costs, 28% would scale back marketing and promotions, while 18% would reduce inventory. Owners who cut either one risk losing the holiday sales they are counting on to recover what they spent.

The survey also found that more holiday sales will sit in the settlement process. Flute's October report found that 58% of owners wait two or more days for bank settlement, so revenue from a busy weekend often sits in pending deposits when vendor bills come due. The owners who wait the longest for their money are also the least prepared, with only 36% of them saying faster access to their own money would meaningfully change how they run their business.

To learn more about funding the holiday season with Flute, visit flute.com. Visit this link to access the full report.

Flute surveyed 209 U.S. small business owners from August to September 2026. All respondents passed an attention check. Holiday questions were sent to 185 owners across retail, professional services, jewelry, restaurants, and hospitality. Figures are rounded to the nearest percent.

The findings of the report indicate that small business owners are facing a significant financial challenge during the holiday season, with many relying on personal savings or credit cards to cover holiday costs. The report highlights the importance of efficient payment systems and the need for better financial planning to mitigate the cash shortfall.