Report shows how real-time SMB behavior signals liquidity, risk, and growth ahead of traditional economic data
Biz2X, the global SaaS platform powering AI-driven small business lending for banks and non-banks, released a new report with Boston Consulting Group (BCG), Urgency and Opportunity: The Next Chapter in Small Business Finance being unveiled at the ninth annual Biz2X Frontiers conference in Miami. The analysis combines real-time small business data with BCG’s macro and industry insights. It shows how better visibility into cash flow, AI-based credit decisions, and earlier insight into liquidity needs are changing how small businesses access credit. These shifts appear well before they show up in traditional economic data.
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“Small business finance is entering a phase where speed, certainty, and relevance matter more than ever,” said Rohit Arora, CEO and Co-founder of Biz2X and Biz2Credit. “Demand from small businesses remains strong, and they are a cornerstone of the economy.
The report finds that while bank fundamentals have improved, markets are signaling a transition toward the next phase of growth. Valuations have recovered from recent lows but still trade at a discount of roughly 40 percent relative to the broader equity market, as investors look for clearer paths to profitable expansion. The question for established financial institutions is no longer balance sheet strength. It is where growth comes from next and how to deliver it at scale.
Small businesses account for roughly 40 percent of U.S. GDP and 45 percent of private sector employment. Yet access to financing remains uneven. According to the 2025 Federal Reserve Small Business Credit Survey, only 41 percent of employer firms received all of the financing they sought.
“Small business finance is entering a phase where speed, certainty, and relevance matter more than ever,” said Rohit Arora, CEO and Co-founder of Biz2X and Biz2Credit. “Demand from small businesses remains strong, and they are a cornerstone of the economy. But legacy delivery models still struggle with high cost-to-serve and fragmented data. AI, embedded distribution, and digitized data infrastructure are changing that dynamic. The winners will be the ecosystems that can turn real-time operational data into real-time decisions at scale.”
The report starts with a simple observation. Capital alone no longer determines who succeeds in small business lending. What matters just as much is where lenders show up, what they can see, and how quickly they can act.
That shift is already underway. Advantage is moving toward institutions that meet small businesses inside the systems they rely on every day, such as payroll, accounting, industry-specific software, and payments. That is where activity happens in real time, and where lending decisions become transformational.
The size of the opportunity is hard to ignore. The U.S. small business lending market may be as large as $1.7 trillion. There is also a meaningful funding gap, especially for smaller, recurring credit needs. Millions of loans originate each year. The economics have historically been difficult. The report suggests that the equation is beginning to shift.
AI adoption is underway. Advances in automation are lowering the cost of serving small businesses. Financial services are becoming embedded in everyday workflows. Data infrastructure is improving. Capital sources are diversifying. None of these trends are new on their own. What is different is the way they are reinforcing each other.
Small businesses have already gone digital in how they manage their finances day to day. But many still feel underserved. Getting answers takes too long and the experience is often fragmented. As a result, small businesses are more open to switching providers when financial services are built directly into the tools they already use to run their businesses.
“The most important story here is compounding change,” said Bharat Poddar, Managing Director and Senior Partner, Boston Consulting Group. “The next chapter is not about defending the balance sheet. It’s about reinventing the operating model. AI-enabled automation can materially improve conversion, reduce underwriting time, and lower servicing costs. But, technology alone is not enough. The system shifts when AI meets embedded distribution, improved data rails, and evolving capital partnerships. This is how a historically uneconomic segment becomes scalable.”
The report looks ahead to a more collaborative phase for the ecosystem. Banks bring trust and balance sheet strength. Platforms bring proximity to the customer. Capital providers bring flexibility. Governments shape the data foundations. As finance becomes more embedded in daily business operations, responsibility becomes part of the model. Transparency, trust, and thoughtful integration matter just as much as speed.
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