Leading Small Business Credit Sales Report Uncovers Paradigm Shift in Consumer Purchasing Behavior on Main Street

Share Article

Capital Access Network’s Report Reveals First Positive Quarter Since Fall 2007

The Q2 2012 Small Business Credit Sales Report (SBCS Report), released today, has revealed the most positive year-over-year (YoY) results since Q3 2007. The quarterly report, compiled from data collected via Capital Access Network, Inc.’s (CAN) proprietary Daily Remittance Platform™, studies credit and debit card sales trends within small to mid-sized businesses (SMBs) nationwide. The YoY card sales increase of 1.3%, approaching levels last seen in 2007, may signal a paradigm shift in the direction of card sales and consumer spending at small and mid-sized businesses.

The report indicated that consumers are spending a portion of their available credit at restaurants, which continued to produce significant positive YoY card sales. The seventh consecutive quarter of positive YoY restaurant card sales showed a 3.6% rise in comparison to Q2 2011. While non-restaurant businesses including retailers have not yet experienced positive YoY card sales, the decline has slowed drastically to 0.5%, a vast improvement from the previous 20 quarters, which all reported declines ranging from 1.1% to 18.5%.

“Small businesses need a revenue infusion and credit card spending at Main Street is supplying that boost. This is a promising time as consumers further their commitment to Main Street by using their available credit to purchase from small and mid-size businesses,” states Glenn Goldman, CAN's CEO. “We have monitored thousands of merchants in the retail, restaurant and services industries. For the first time in nearly five years, spending is up in nearly all metropolitan areas, restaurants are up in all categories, regional performance is holding steady and retailers are seeing steady improvement. At CAN, these are the trends we are encouraged by.”

Additional key findings showed that restaurants, regardless of average ticket size, experienced the third consecutive quarter of positive YoY card sales. Several metropolitan areas (MSAs) showed improvement in YoY card sales, as well. Rural MSAs (population less than 100,000) reported the most significant positive YoY growth of 7.0%. MSAs of 1 million inhabitants or more reported growth of 0.9%, the first time since Q3 2007 that this population size has shown positive YoY card sales.

CAN conducts the SBCS Report to assist business owners, the processing industry, associations, analysts and media that are interested in tracking and benchmarking credit and debit card sales trends among SMBs. Data published includes Average Same Store Credit Sales in the following categories: Overall, By Population Size, By Industry and Ticket Size, By Geographic Region and By Time in Business.

To access a copy of the Q2 2012 SBCS Report, please visit: http://www.capitalaccessnetwork.com/data-services/sbcs-report

About the CAN Small Business Credit Sales Report
The Small Business Credit Sales (SBCS) Report is a quarterly report highlighting credit and signature debit card sales trends within small to mid-sized businesses (SMBs) nationwide. Sponsored by the Data Services Division of Capital Access Network, Inc. (CAN), a New York-based financial technology company, the SBCS Report features analysis of credit and debit card sales trends based on same store card sales data housed in CAN’s data warehouses, which retain 14 years of restaurant, retail and service industry data from more than 50,000 businesses and the “daily” card sales data collected from more than 80,000 working capital transactions that have been supported by CAN’s proprietary Daily Remittance Platform. Most same store sales retail reports focus on or include data from big-box retail and nationwide/regional department stores, either ignoring or obscuring the trends of the majority of SMBs.

About Capital Access Network, Inc.
Capital Access Network, Inc. (CAN), through its subsidiaries NewLogic Business Loans, Inc. and AdvanceMe, Inc., has provided small businesses access to $2.5B in working capital. CAN's "Daily Remittance" platform and proprietary risk models enable CAN to evaluate businesses based on their performance, resulting in increased access to capital. With one simple application, businesses are given choices that can provide the cash infusion needed to manage and grow. As the leading developer of next-generation "Daily Remittance" powered financial products and services, CAN also supports small business finance providers desiring more finance options for their own customers in the U.S. and internationally. Learn more at CapitalAccessNetwork.com.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Diane Naczi

Carrie Crabill
Visit website