Leading Small Business Credit Sales Report Uncovers Drop in Consumer Purchasing from Main Street Businesses

Capital Access Network’s Report Reveals Negative Quarter, Setback in Previously Steady Growth

NEW YORK--()--There has been a stall in Q3 2012 year-over-year (YoY) small business card sales growth compared to the past four quarters, according to the Capital Access Network’s (CAN) recent Small Business Credit Sales Report (SBCS Report) released today. The quarterly report, compiled from data collected CAN’s proprietary Daily Remittance Platform, studies credit and debit card sales trends of small to mid-sized businesses (SMBs) nationwide. This quarter reported a decline in YoY Main Street card sales of -3.2%, coinciding with a projected dip in available consumer credit, per the Federal Reserve’s August 2012 G19 Release. After a steep rise in August 2012, a substantial month-over-month (MOM) consumer revolving credit decline resulted in September, pulling down the projected Q3 average -1.6%. The Q3 SBCS Report results indicate that less consumer revolving credit availability may have impacted consumers’ ability to buy from small businesses.

While Q3 2012 marks eight consecutive quarters of positive YoY restaurant card sales, there is evidence of weakening in this trend. September restaurant card sales reported in negative territory, declining -0.2%, the first negative YoY card sales report in the restaurant category in nine months.

“The figures we are seeing are consistent with those reported in early 2011, and illustrate a decline in revenue stream and credit card spending on Main Street. Small businesses are surely hoping for an uptick in consumer spending as the holiday season approaches and consumers opt to purchase gifts from small and mid-size businesses and entertain at Main Street restaurants,” states Glenn Goldman, CAN's CEO.

One firmographic faring better than others is “established” small businesses. “After monitoring thousands of merchants in the retail, restaurant and services industries and observing trends as they relate to growth, we have seen that businesses that have been operating for 15 or more years experienced the least detrimental decline of -2.2% in Q3 2012. These businesses may be benefitting from established and loyal customer bases that direct their available credit to these local businesses,” says Goldman.

Additional key findings from the Q3 SBCS Report show that restaurants with an average ticket size of less than $50 reported positive YoY card sales, however restaurants with an average ticket size exceeding $50 reported negative growth. YoY card sales spend declined for three out of four metropolitan areas (MSAs), excluding MSAs with a population of less than 100,000, indicating greater small business economic strength in more rural communities.

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 Q3 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 60,000 businesses and the “daily” card sales data collected from more than 95,000 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.

Since 1998, Capital Access Network, Inc. (CAN) has provided small businesses access to over $2.5B in working capital through its subsidiaries, NewLogic Business Loans, Inc. and AdvanceMe, Inc. CAN’s award winning technology platform automatically evaluates a multitude of business performance variables by integrating big data from firmographic, banking, and credit card processing sources with proprietary risk models built from over 100,000 transactions over multiple business cycles in approximately 750 SIC codes. This enables CAN to have unparalleled insight into the strength of the business and provide access to capital based on business performance rather than personal credit scores of the business owners. CAN also supports small business finance providers desiring more finance options for their own customers in the U.S. and internationally. All business loans obtained through NewLogic Business Loans are made by WebBank, a Utah-chartered Industrial Bank, Member FDIC.


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Carrie Crabill, 404-214-0722 x102


Release Summary

Capital Access Network’s Report Reveals Negative Quarter, Setback in Previously Steady Growth

Capital Access Network, Inc.