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Business Wire
04-08-2025
- Business
- Business Wire
Small Business Sales Tick Up in July, Driven by Higher Average Ticket Sizes
MILWAUKEE--(BUSINESS WIRE)-- Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, has published the Fiserv Small Business Index for July 2025, with the seasonally-adjusted Index rising 1 point to 149. Year-over-year sales (+3.6%) and transactions (+3.0%) remained strong, signaling the continued resilience of consumer spending. Average ticket sizes (+0.7%) also grew compared to 2024. Month-over-month sales (+1.0%) grew, reversing a three-month trend of softening consumer spend. Average tickets (+0.9%) rose compared to June, while foot traffic (+0.1%) remained relatively flat. 'July brought modest monthly sales growth for small businesses, but those gains were largely driven by higher average tickets, likely resulting from continued inflationary pressure,' said Prasanna Dhore, Chief Data Officer, Fiserv. 'Economic pressures continue shifting spending patterns as well. Consumers are spending more on essentials, while discretionary is growing at a much slower pace.' Key Takeaways Consumer Spending Increased over June, But Foot Traffic Did Not – July's month-over-month sales growth (+1.0%) broke a multi-month slump. However, with transaction growth nearly flat (+0.1%), consumers weren't visiting small businesses more in July, they were just spending more on purchases when they did. For example, retail sales growth (+1.1%) in July 2025 compared to June 2025 was directly attributable to an increase in average ticket size (+1.1%). Essentials Outpace Discretionary (Again) – Sales continued to grow significantly across Essentials, rising month-over-month (+1.5%) and year-over-year (+6.1%). Discretionary sales grew, but at a slower pace month-over-month (+0.5%) and year-over-year (+1.1%). This shift comes with higher costs for consumers as average tickets for Essentials are rising significantly month-over-month (+1.4%) and year-over-year (+3.0%). Restaurants Reflect Consumer Caution – Restaurant visits dipped for the third straight month (-0.3%), dragging sales down (-0.9%) compared to June. When adjusting for inflation, sales declined (-1.1%) compared to June. As a bellwether for household budget flexibility, declining restaurant sales in July signal consumers continuing to tighten up. Despite the slowdown compared to June, restaurant sales are still growing year over year (+1.8%). Foot traffic has also increased (+2.2%) compared to 2024. Ambulatory Health Care and Wholesalers Gain Some Momentum – After a sluggish spring, Ambulatory Health Care (+3.2%), Wholesale Durables (+1.4%), and Wholesale Non-Durables (+2.0%) made solid month-over-month gains. To access the full Fiserv Small Business Index, visit About the Fiserv Small Business Index ® The Fiserv Small Business Index is published during the first week of every month and differentiated by its direct aggregation of consumer spending activity within the U.S. small business ecosystem. Rather than relying on survey or sentiment data, the Fiserv Small Business Index is derived from point-of-sale transaction data, including card, cash, and check transactions in-store and online across approximately 2 million U.S. small businesses, including hundreds of thousands leveraging the Clover point-of-sale and business management platform. Benchmarked to 2019, the Fiserv Small Business Index provides a numeric value measuring consumer spending, with an accompanying transaction index measuring customer traffic. Through a simple interface, users can access data by region, state, and/or across business types categorized by the North American Industry Classification System (NAICS). Computing a monthly index for 16 sectors and 34 sub-sectors, the Fiserv Small Business Index provides a timely, reliable and consistent measure of small business performance even in industries where large businesses dominate. About Fiserv Fiserv, Inc. (NYSE: FI), a Fortune 500 company, moves more than money. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and Clover ®, the world's smartest point-of-sale system and business management platform. Fiserv is a member of the S&P 500 ® Index, one of TIME Magazine's Most Influential Companies™ and one of Fortune ® World's Most Admired Companies™. Visit and follow on social media for more information and the latest company news. FI-G
Miami Herald
26-06-2025
- Business
- Miami Herald
How to stress test your small business finances (before it's too late)
How to stress test your small business finances (before it's too late) When the economy takes a hit, small businesses usually feel it first. Inflation, rising interest rates, or global disruptions can shrink margins fast. During one recent slowdown, the Fiserv Small Business Index showed a 2.9% drop in sales across small firms, a clear sign of how quickly spending habits shift and ripple through local economies. Still, many small business owners stay in reactive mode. They wait until the pressure mounts (when cash reserves run low or debt payments stack up) before making changes. By then, options are limited. Without a backup plan, businesses risk layoffs, deep cuts, or shutting down altogether. That's where financial stress testing comes in. Once reserved for big corporations and banks, stress testing lets you run "what if" scenarios - like a 20% sales dip or a sudden spike in costs - to see how your business would hold up. It's a forward-looking tool that helps you spot weaknesses, build contingency plans, and avoid last-minute scrambles. In this guide, Gateway Commercial Finance, an invoice factoring company, walks you through how to build a stress test from scratch, which metrics to track, and how to use the results to keep your business steady, no matter what the economy throws your way. What financial stress testing means for small businesses Most small business owners know how to budget, forecast, and manage day-to-day finances. But fewer use financial stress testing, a tool that helps businesses prepare for serious economic shocks. Unlike the complex, federally mandated tests used by big banks, stress tests for small businesses are simple models that simulate worst-case scenarios, like a sudden drop in revenue or a surge in costs. What stress testing is really for Stress testing isn't about predicting the future. It's about spotting weak spots so you can act before trouble hits. According to accounting firm Kreischer Miller, these tests help businesses: Catch vulnerabilities early. They can reveal heavy dependence on a single revenue stream or costs that can't flex in a worst-case outcomes. For example, what happens to your cash reserves if sales fall 25%?Build resilience. With that data, you can tweak spending, policies, or staffing before you're forced to react under pressure. Scenarios worth testing first There's no one-size-fits-all approach to stress testing, but most small businesses can start by modeling three core risks: Revenue drops. What if your sales fall by 10%, 20%, or even 30% over a quarter?Rising costs. How would your margins hold up if supplier prices or payroll costs spiked?Delayed payments. Can your business handle a 60-day payment delay from a key customer? Regularly testing these kinds of shocks helps you pivot with less pain and more control. Key metrics every small business should track Running a solid stress test starts with watching the right numbers. Focus on three core metrics: liquidity ratios, cash burn rate, and debt service coverage ratio (DSCR). Together, they give a clear picture of how long your business can hold up under pressure and where things might break down. Liquidity ratios show your short-term safety net Liquidity ratios tell you if you've got enough assets to cover your short-term bills. The two big ones are: Current ratio. Divide current assets by current liabilities. A number above 1.0 means you should be able to pay what's due in the near ratio. This takes out inventory and looks only at the most liquid assets. It's especially useful if your inventory takes time to turn over. Take your current assets and subtract inventory and prepaid expenses. Then, divide that by your current liabilities. Think of liquidity ratios as an early warning system. If your current ratio drops below 1.0, it could mean cash is running tight. FreshBooks notes that most healthy small businesses aim for a current ratio between 1.2 and 2.0. Cash burn rate shows how long you can last A burn rate tells you how quickly you're spending your cash reserves and how long you can keep the lights on if revenue drops. Gross burn rate looks at monthly operating expenses burn rate subtracts revenue from those expenses to show your actual cash loss. Both numbers matter. Once you know your burn rate, you can calculate your cash runway, which is how many months you can last without more income. We recommend checking this monthly, especially during unstable periods. DSCR tells you if you can keep up with debt Your debt service coverage ratio (DSCR) shows whether your business earns enough to cover its debt payments: DSCR = Net operating income ÷ Total debt service A DSCR of 1.25 means you're bringing in 25% more than you need to cover your debts. That's usually the minimum lenders want to see. A DSCR under 1.0 is a red flag. It means you're either taking on more debt to stay afloat or cutting into operations to make payments. A step-by-step guide to running your own financial stress test Stress testing doesn't have to be complicated. With a clear process, you can spot weak points and build realistic backup plans before things get bumpy. Here's a four-phase approach to help you create and run a small business financial stress test that actually works. Phase 1: Collect your data and set a baseline Begin by building a simple three-column spreadsheet to get a clear picture of your business's financial footing. List all of your expected revenue (recurring income streams) over the next 12 months in column one. Document your projected expenses for the same period, including fixed and variable costs, in the next column. In the third one, record any cash you currently have on hand and the outstanding invoices you're expecting to collect (your accounts receivable). Once your numbers are laid out, total each column and compare your anticipated income to your projected expenses. If revenue exceeds costs, you're in a stable position. If not, check whether the funds in your third column can help cover the gap. The goal of this exercise is to define your business's financial baseline so you know where things stand before testing more stressful scenarios. Phase 2: Build your worst-case scenarios Now, think through the risks that could hit your business hardest. What happens if sales drop 25% for two quarters? What if labor costs spike or suppliers raise prices overnight? Tailor your scenarios to your industry. A restaurant might test for a sudden jump in food costs. A contractor might model what happens if a major client delays payment. The key is to pick realistic threats - not doomsday fantasies - that would seriously test your financial resilience. Phase 3: Run the numbers and measure the impact With your scenarios set, plug the changes into your spreadsheet and track how they affect your financials. Will you still have enough cash to cover payroll? Will your DSCR drop below 1.0? Use adjusted financial forecasts and break-even analysis to see how bad things could get. Adjusted forecasts are updated versions of your financial projections that reflect each "what if" scenario you've mapped out. They help you see the road ahead under different conditions. A break-even analysis shows the minimum amount of revenue you need to cover your expenses. It answers the question: How much do I need to earn to avoid losing money? This is especially useful when planning for a downturn. Number Analytics suggests flagging any red-line metrics, like a current ratio under 1.0 or negative cash flow. These signals tell you where the real trouble might start. Phase 4: Create a response plan for each scenario The real value in stress testing comes from action. For each scenario, outline a quick, cost-effective response plan. That might mean tightening expenses, negotiating longer payment terms, delaying new hires, or opening a credit line before you need it. Consider ranking actions by how fast and cheap they are to implement. That way, you know exactly what levers to pull when time and cash are tight. You don't need to run a stress test every week, but doing it at least once a year (or quarterly during turbulent times) can give you a real edge and help you feel more prepared for whatever you may face ahead. Real-world lessons from recent economic shocks Recent disruptions have shown just how fast economic conditions can change and what happens when businesses aren't ready. Here are two powerful examples with clear takeaways. What COVID-19 revealed about the restaurant industry When the pandemic hit, the U.S. restaurant industry saw an almost instant collapse in foot traffic. Within six months, over 100,000 restaurants closed permanently or for the long haul. Millions of jobs disappeared. Cash flow dried up. Fixed costs like rent and payroll kept coming, even with zero revenue. The restaurants that made it through moved fast and pivoted from their usual operations. Some downsized or renegotiated leases. Others launched delivery and curbside models to stay afloat. While some bounced back in the years that followed, the early days of COVID-19 exposed just how fragile the industry was, especially without a contingency plan or a stress-tested playbook. How U.K. hospitality felt the squeeze Across the Atlantic, the U.K. hospitality sector has faced its own crisis. A 2.4% contraction in the industry collided with rising labor costs and post-Brexit rules. For many, margins were already razor thin. Add in supply chain delays, inflation, and staffing shortages, and the pressure became overwhelming. Businesses that had run stress tests and modeled cost increases were more prepared. They moved faster, adjusted operations, and found ways to stay open. Others were caught off guard, couldn't react in time, and had to shut down or seek emergency funding. Tools and templates to keep stress testing running smoothly A one-time stress test is helpful, but making it part of your regular routine is what really pays off. With the right tools and templates, you can turn stress testing into a habit that strengthens your business long-term. Build a dashboard to monitor financial health in real time A simple dashboard gives you a quick read on how your business is holding up. Focus on the KPIs that matter most: liquidity ratios, gross and net cash burn, revenue trends, and spending volatility. You can build your dashboard in Excel, Google Sheets, or through cloud-based platforms like QuickBooks and Xero. Tracking liquidity ratios regularly is one of the best ways to catch early signs of trouble and act before things get worse. What to include in your dashboard: Current ratio and quick ratio side by sideMonthly cash inflows vs. outflowsUpcoming loan payments and DSCR statusProjected vs. actual revenue and expenses These snapshots help you stay proactive, not reactive. Set a regular review schedule and stick to it Stress testing only works if you revisit it often. Set up monthly reviews to monitor short-term shifts, and quarterly sessions to update scenarios and adjust plans. You'll want to update your stress test whenever: You land (or lose) a major costs suddenly trends signal a financial metrics dip below safe levels. To stay on track, create a recurring calendar reminder or automate a financial report. When stress testing becomes routine, you're much more likely to spot issues early and deal with them on your terms. Build resilience before you need it While many small businesses wait for a crisis to check their financial health, the ones that plan ahead ride out downturns with less stress and fewer surprises. You don't need fancy tools to get started with financial stress testing. Use what you already know, like your cash flow, costs, and weak spots, and build simple "what if" models around them. A few hours of planning now can prevent months of scrambling later. Make stress testing part of your regular rhythm. Add key metrics to your monthly dashboards. Refresh your scenarios every quarter. As your business grows and changes, your risks will also shift, so your prep needs to keep up. Businesses that test early adapt faster, survive, and keep moving forward, even when the economy doesn't. This story was produced by Gateway Commercial Finance and reviewed and distributed by Stacker. © Stacker Media, LLC.
Business Wire
02-06-2025
- Business
- Business Wire
Small Business Sales Growth Inches Higher in May Despite Lingering Uncertainty
MILWAUKEE--(BUSINESS WIRE)-- Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, has published the Fiserv Small Business Index for May 2025, with the seasonally-adjusted Index remaining flat at 151. Despite shifting spending patterns as consumers navigate near-term economic uncertainty, small businesses maintained solid year-over-year sales growth of (+3.3%) and total transactions rose (+3.8%). "Small businesses continue to show resilience, with May marking another month of year-over-year growth," said Prasanna Dhore, Chief Data Officer, Fiserv. "Small businesses continue to show resilience, with May marking another month of year-over-year growth," said Prasanna Dhore, Chief Data Officer, Fiserv. "The continued shift toward essential spending is now a defining trend—growing at double the rate of discretionary purchases as consumers are more intentional with their spending.' Month-over-month sales (+0.2%) also grew while declining transactions (-2.7%) reflected lower consumer foot traffic. This is the first decline of this magnitude since February 2023, when transactions fell (-2.5%) compared to the month prior. The May average ticket size increased by (+2.9%) compared to April, reflecting a shifting mix of consumer spend, changing demand patterns, and potentially higher pricing for some goods and/or services. For contrast, in the 12 months prior to May, average ticket sizes declined at a modest average rate of (-0.3%) month-over-month. Service-Based Small Businesses Drive Growth Compared to May 2024, sales of Services (+3.9%) outperformed Goods (+1.9%), a continuing trend for 2025. Growth drivers on a month-over-month basis included the Transportation and Warehousing sectors. On an annualized basis, Manufacturing and Professional Services showed the most momentum. Compared to April 2025, Services (+0.4%) showed modest growth while Goods (-0.3%) declined month-over-month, highlighting the continued consumer preference for experiences and essential services over material purchases. Despite Declining Foot Traffic, Small Business Restaurant Sales Hold Steady Small business restaurant sales grew modestly year-over-year (+1.8%). On a monthly basis, sales (+0.6%) grew while foot traffic (-5.6%) declined compared to April, with full-service restaurants experiencing the most significant drop. Consumers Continue to Be Selective in Retail Purchases Compared to 2024, small business retail sales (+0.9%) grew modestly while transactions (+2.9%) remained positive. The average ticket size declined nearly (2.0%) year-over-year, suggesting consumers are shopping more frequently but spending less per visit. This trend is likely driven by promotional shopping and deal-seeking as households continue to navigate inflationary pressures. Growth was led by Food and Beverage Retailers (+3.9%) and Clothing Retailers (+5.2%). Gasoline Stations (-5.4%) declined year over year due to significantly lower fuel prices while Health and Personal Care Retailers (-1.7%) also fell. On a monthly basis, small business retail sales (-1.0%) declined as consumers became more selective in their purchases. Regional Trends Highlight Broad-Based Small Business Strength Compared to April, small business sales grew in 30 of 50 states, indicating broad, but not universal, growth. The most aggressive month-over-month sales growth was concentrated among smaller states, led by New Mexico (+5.9%), Maryland (+3.2%), and Rhode Island (+3.1%). Year-over-year sales growth was strongest in Washington (+13.3%), South Carolina (+11.3%), and Maryland (+10.1%). Among major metropolitan areas, San Francisco (+10.0%) and Atlanta (+9.5%) were the strongest-performing large cities for small business sales growth year-over-year. Month-over-month sales growth was strongest in Dallas (+2.0%) and Chicago (+1.7%), indicating healthy momentum in key urban markets despite broader consumer caution. About the Fiserv Small Business Index ® The Fiserv Small Business Index is published during the first week of every month and differentiated by its direct aggregation of consumer spending activity within the U.S. small business ecosystem. Rather than relying on survey or sentiment data, the Fiserv Small Business Index is derived from point-of-sale transaction data, including card, cash, and check transactions in-store and online across approximately 2 million U.S. small businesses, including hundreds of thousands leveraging the Clover point-of-sale and business management platform. Benchmarked to 2019, the Fiserv Small Business Index provides a numeric value measuring consumer spending, with an accompanying transaction index measuring customer traffic. Through a simple interface, users can access data by region, state, and/or across business types categorized by the North American Industry Classification System (NAICS). Computing a monthly index for 16 sectors and 34 sub-sectors, the Fiserv Small Business Index provides a timely, reliable and consistent measure of small business performance even in industries where large businesses dominate. To access the full Fiserv Small Business Index, visit About Fiserv Fiserv, Inc. (NYSE: FI), a Fortune 500 company, moves more than money. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and Clover ®, the world's smartest point-of-sale system and business management platform. Fiserv is a member of the S&P 500 ® Index and one of Fortune ® World's Most Admired Companies™. Visit and follow on social media for more information and the latest company news. FI-G
Yahoo
15-05-2025
- Business
- Yahoo
April Small Business Sales Improved from March, Though Consumers Continue to Trim Discretionary Spending
Fiserv Small Business Index rises 1 point to 151 Small business sales grew +3.2% year-over-year and +0.4% month-over-month MILWAUKEE, May 05, 2025--(BUSINESS WIRE)--Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, has published the Fiserv Small Business Index for April 2025, with the seasonally-adjusted Index at 151, a one point increase from March. As National Small Business Week begins in the U.S., consumers are making notable shifts in purchasing behavior – spending more on the essentials, trimming back discretionary purchases, and spending less when they choose to dine out. "Even as consumer spending shows resiliency, market uncertainties appear to be driving budget-conscious consumers to reprioritize where they spend their money," said Prasanna Dhore, Chief Data Officer, Fiserv. "Small businesses providing the essentials, including healthcare and grocery, saw strong gains in the month; conversely, discretionary spending, including parts of travel and retail saw growth slow." On a year-over-year basis, small business sales (+3.2%) and total transactions (+6.9%) continued to show growth. Annual sales growth was challenged by very strong results in April 2024, while transactions growth maintained healthy levels relative to the past 12 months. Month-over-month sales (+0.4%) and transactions (+0.3%) also rose. Inflation contributed 2.4% to April 2025 sales growth compared to 3.4% in April 2024, and 2.4% in March 2025. Services Outperform Goods Compared to April 2024, sales of Services (+3.6%) continued to outperform Goods (+2.2%), which has been the case for each month of 2025. Top-performing service categories included Professional Services (+5.0%) and Ambulatory Health Care (+4.2%). Sales declined most in Accommodation (-5.0%), and Transit and Transportation (-1.9%). Compared to March 2025, Ground Transportation (+4.1%), Insurance (+2.7%), and Rental and Leasing (7.1%) services were the fastest-growing categories. Sales in Accommodation (-0.6%) declined after seeing significant growth a month prior (+3.7%), pointing to consumers pulling back in discretionary categories. Consumers Cut Back When Eating Out Small business restaurant sales grew modestly year-over-year (+1.8%). On a monthly basis, sales (-0.1%) declined and foot traffic (+0.6%) grew compared to March. An increasingly budget-conscious consumer continues to show up most when dining out. Compared to 2024, average ticket sizes are down significantly (-7.8%) despite total transactions being up (+9.6%). Retail Growth Cools Compared to 2024, small business retail sales (+2.2%) and transactions (+0.1%) grew, slowly, led by Grocery (+7.0%), Clothing (+5.3%), and Building Materials/Garden Supply (+4.6%). Gasoline Stations (-4.1%) and Health and Personal Care Retailers (-1.9%) declined. On a monthly basis, Retail sales (+0.2%), transactions (+0.1%) and ticket sizes (+0.1%) were nearly flat. The most sales growth came from Gasoline Stations (+1.5%) and Building Materials/Garden Supply (+1.0%); sales slowed most in General Merchandise (-2.6%) and Sporting Goods (-1.5%). About the Fiserv Small Business Index® The Fiserv Small Business Index is published during the first week of every month and differentiated by its direct aggregation of consumer spending activity within the U.S. small business ecosystem. Rather than relying on survey or sentiment data, the Fiserv Small Business Index is derived from point-of-sale transaction data, including card, cash, and check transactions in-store and online across approximately 2 million U.S. small businesses, including hundreds of thousands leveraging the Clover point-of-sale and business management platform. Benchmarked to 2019, the Fiserv Small Business Index provides a numeric value measuring consumer spending, with an accompanying transaction index measuring customer traffic. Through a simple interface, users can access data by region, state, and/or across business types categorized by the North American Industry Classification System (NAICS). Computing a monthly index for 16 sectors and 34 sub-sectors, the Fiserv Small Business Index provides a timely, reliable and consistent measure of small business performance even in industries where large businesses dominate. To access the full Fiserv Small Business Index, visit About Fiserv Fiserv, Inc. (NYSE: FI), a Fortune 500 company, moves more than money. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and Clover®, the world's smartest point-of-sale system and business management platform. Fiserv is a member of the S&P 500® Index and one of Fortune® World's Most Admired Companies™. FI-G View source version on Contacts Media Relations: Chase WallaceDirector, CommunicationsFiserv, Inc.+1 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
21-01-2025
- Business
- Washington Post
Rosy December for small business sales, but restaurants are left out
NEW YORK — Small businesses had a merry December, as shoppers wrapped up their holiday shopping. That's according to the Fiserv Small Business Index. In the U.S., the seasonally adjusted index for December was 146, up 3 points from November. The figure is derived from point-of-sale transaction data, including card, cash, and check transactions in-store and online across about 2 million U.S. small businesses.
