88% of U.S. small businesses face cash flow disruptions, report finds 

According to new survey data from Relay Financial Technologies, the all-in-one business banking and money management platform, 88% of small businesses in the United States face regular cash flow disruptions. The findings challenge the notion of a unified Main Street, revealing stark differences in economic outlook and financial readiness across industries.

Relay’s Cash Flow Compass report, based on a survey of more than 1,000 small business owners, found that although 94% of respondents expect growth this year, only 31% are actively optimizing their cash flow through measures like expense tracking and streamlined payroll. A third of respondents reported being unprepared to handle a financial or economic downturn. Inflation and trade or tariff actions were cited as the top two external pressures.

Sector-level data highlighted diverging experiences. Real estate professionals expressed the most optimism, with 62% describing the current economic climate as strong or recovering. They also reported the longest average cash runway at 55 days, compared to 43 days across all sectors.

Skilled trades, including construction, plumbing and HVAC, were less confident. 47% cited rising material costs as a barrier to profitability, and one in four reported a lack of contingency plans if the owner had to stop working. Meanwhile, 53% of respondents in this group described the economic climate as uncertain or challenging.

Retail and e-commerce businesses reported ongoing supply chain disruptions, but many are turning to artificial intelligence to manage finances. Sixty-six percent said they would trust AI tools to handle cash flow, with top use cases including income tracking, automated bill payments, and predictive modeling.

The report was compiled in partnership with independent research firm Research+Knowledge=Insight. The survey was conducted in April and May 2025 among U.S. small and medium-sized business owners with at least $240,000 in annual revenue and two or more employees or contractors.