B2B FinTechs are increasingly shifting focus to serve small and medium-sized businesses (SMBs), recognizing their need for sophisticated financial tools despite lacking enterprise-level infrastructure. This strategic pivot is evidenced by Pennylane's recent $82 million raise for SMB accounting solutions. The trend is driven by advances in AI, open banking, and API architectures making SMB-focused services scalable. According to PYMNTS Intelligence, 56% of SMBs rely solely on operational cash flow or personal capital, highlighting the critical need for enhanced financial services. PayPal's success in this space is notable, having originated over $30 billion in small business loans since 2013.