Large corporations and small companies are not the same. The most obvious difference is sheer size, but the knock-on effects of that size have effectively erected an operational boundary between what the world’s multinationals do for their day-to-day growth and what a domestic Main Street company does.
But new findings in “The Cross-Border Opportunity: What Global Sourcing by US SMBs Means for Payment Providers,” a collaboration between PYMNTS Intelligence and Mastercard, show that the wall between enterprise operations and small- and medium-sized business (SMB) workflows is becoming increasingly permeable. As international sourcing becomes routine rather than exceptional, America’s small businesses are taking on responsibility for corporate finance, ranging from foreign exchange management to supplier liquidity and cross-border cash flow.
Nearly six in 10 U.S. SMBs surveyed (57%) now purchase goods or inputs from suppliers abroad, while nearly three-quarters of companies generate annual revenue between $1 million and $10 million internationally. Even among companies that earn less than $150,000 a year, more than four in ten now buy from foreign suppliers.
Change is redefining what is expected of modern SMB finance teams.
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Global trade offers new treasury capabilities for small businesses
The globalization of supply chains is quietly leading to the globalization of financial transactions. While millions of companies still identify as local or regional operators, most of them are now tackling financial challenges that until recently fell almost exclusively to multinational corporations with dedicated teams to manage foreign exchange risk, optimize global liquidity, monitor cross-border cash flows and negotiate payment terms across international supplier networks.
In contrast, small businesses balanced their checkbooks, paid suppliers, and managed their working capital largely within domestic banking systems. At least before. The report highlights how quickly these global sourcing strategies have spread. International procurement no longer focuses on manufacturers. Retailers, hospitality companies, entertainment companies and other service businesses rely on foreign suppliers for specialized products, equipment and inventory. Global sourcing has become part of normal business operations rather than an indicator of multinational size.
Nevertheless, the report concludes that almost two-thirds of international SMEs continue to pay their suppliers abroad predominantly in US dollars, despite sourcing their products predominantly from markets across Asia and Europe. Only a small minority transact primarily in suppliers’ local currencies.
On the surface, paying in dollars simplifies accounting for U.S. companies. However, in practice, currency conversion costs and exchange rate uncertainty are often passed on to suppliers, who often offset these costs through pricing or build additional risk premiums into their business relationships.
A payment to a manufacturer in China, an equipment supplier in Germany, or a specialty food manufacturer in Mexico requires more than just the transfer of funds. It presents questions about exchange rates, settlement timing, banking infrastructure, liquidity planning and supplier payment preferences. Every transaction becomes a decision about how efficiently cash moves across borders.
Read the report: The cross-border opportunity: What global sourcing by U.S. SMEs means for payment providers
The report also points to another structural shift: payments are being embedded into broader operational software and no longer exist as standalone banking activities. Traditional financial institutions remain the dominant providers of cross-border payments, but FinTech platforms are increasing in popularity and achieving the highest satisfaction scores among non-cryptocurrency payment providers. At the same time, accounting platforms with integrated payment functions are continuing to expand their role in the financial business of SMEs.
Just as customer relationship management has been integrated into sales operations and artificial intelligence is increasingly being used in productivity applications, treasury functions are gradually being integrated into everyday financial operations. Instead of logging into separate banking portals to initiate international transfers, SMB finance professionals increasingly expect payments to occur directly within accounting systems, procurement workflows and enterprise software platforms.
The modern SMB finance leader increasingly balances accounting, forecasting, accounts payable, procurement support and international treasury decisions simultaneously. For SMBs with limited finance staff, reducing operational complexity can prove as valuable as reducing transaction costs.
Ultimately, the report suggests that the future competitive landscape among SMEs may not solely depend on who finds the best suppliers abroad. It may depend on who manages these global relationships most effectively.
https://www.pymnts.com/smbs/2026/small-businesses-inherit-big-business-money-problems/
