The utilization of working capital solutions is on the rise. In fact, 80% of Growth Corporates using at least one such solution in 2024, is up 13% year over year. In addition, PYMNTS Intelligence’s research finds significant improvements in working capital efficiency among Growth Corporates in 2024. This efficiency gain is largely attributed to better cash visibility and optimized use of working capital solutions.
The preference for on-demand solutions, such as corporate and virtual cards and bank lines of credit, has surged. This is especially evident in regions and industries with high operational efficiency. However, challenges in accessing these solutions persist. The impacts are particularly felt among firms in Central Europe, the Middle East and Africa (CEMEA) and in industries like commercial travel and media and technology, where slow approvals and suboptimal options are prevalent.
The most efficient Growth Corporates — which we labeled top performers — leveraged flexible and strategic working capital solutions. As a result, they achieved 51% shorter cash conversion cycles. They also averaged savings of $11 million in bottom-line benefits from reduced interest, inventory carrying costs, and supplier discounts. Top performers tend to use working capital strategically. They deploy working capital solutions to cover predictable cash flow gaps or to invest in business growth.
These are some of the findings explored in “The 2024-2025 Growth Corporates Working Capital Index,” a PYMNTS Intelligence report commissioned by Visa. This edition examines the business conditions and working capital requirements of 1,297 CFOs and Treasurers across eight industry segments, five global regions and 23 countries. It draws on an in-depth quantitative and qualitative survey of firms with annual revenue between $50 million and $1 billion, conducted between May 21 and July 9.
This report includes crucial information for the firms that drive local, regional and global economies. It also includes details about the working capital solutions available to support these firms’ steady growth. Download the report to learn what’s next for Growth Corporates across the globe.