CFOs Shift Focus: Working Capital Transforms into Growth Engine

Corporate finance is undergoing a transformative shift, particularly for small to mid-sized businesses. Recent findings from Visa’s third annual Growth Corporates Working Capital Index indicate that working capital is now a pivotal growth engine rather than merely a buffer against risks. This evolution offers a wealth of opportunities for small business owners, allowing them to leverage new tools and strategies for better liquidity management.

Visa’s Index, which surveyed over 1,400 CFOs and Treasurers across 10 industries and 23 countries, highlights two distinct profiles of finance leaders emerging in this landscape: the Strategic Planner and the Adaptable Accelerator. Both types are utilizing technology and financial tools to navigate challenges and seize opportunities.

The Strategic Planner adopts a long-term view, not just safeguarding capital but actively utilizing it for growth and supplier relationship building. On the other hand, the Adaptable Accelerator is focused on immediate needs, quickly deploying working capital solutions to manage volatility or to seize unforeseen growth opportunities. Notably, usage of corporate cards for these purposes has tripled globally, signaling a shift toward agility in finance.

Lauren Hewings, Visa’s Head of Working Capital Solutioning, stated, “Our 2025-2026 Index underscores that working capital management is no longer defensive. Finance leaders are unlocking an average of $19 million in savings while accelerating supplier payments and transforming receivables.” This statistic can be game-changing for small business owners who often feel the pinch of cash flow constraints.

Efficient cash management significantly impacts small businesses, and the Index reveals promising strategies. By leveraging AI and digital tools, CFOs and Treasurers have reported as much as $19 million in savings through better management of liquidity. In fact, over half of Growth Corporates have begun using AI for enhanced forecasting and workflow automation. This approach has led to an impressive increase in cash flow visibility and a marked decrease in financial uncertainty.

Small businesses are particularly well-positioned to derive benefits from this trend. The ability to pay suppliers faster, negotiate better terms, and utilize AI-driven insights could mean the difference between thriving and just surviving in a competitive market. Visa’s research shows that 53% of finance leaders use corporate and virtual cards to enhance cash flow. This trend underscores a noteworthy pivot: more businesses are recognizing corporate cards not just as transactional tools but as strategic instruments for financial growth.

However, as with any emerging strategy, there are challenges. Visa’s Index notes a significant increase in loan rejection rates, now sitting at 27% globally, complicating financing options for many businesses. Small business owners may find themselves frustrated by traditional banks, which often lag in providing digital-first tailored offerings. The shift in financial needs means that a re-evaluation of partnerships with financial service providers may be necessary to align with immediate business goals.

The Index also highlighted that small and mid-sized companies are increasingly demanding simplified digital solutions and on-demand financing that aligns with real-time cash flow. For business owners, this means seeking out partners that can offer flexibility and match the pace of today’s fast-evolving marketplace.

The advantages of pivoting strategies in working capital management are clear. Finance leaders embracing these shifts are outperforming their peers, demonstrating enhanced efficiency and innovation. With veteran CFOs twice as likely to leverage corporate cards strategically, it becomes apparent that experience in finance significantly influences organizational outcomes.

In this new era of financial management, small business owners can potentially enhance liquidity while maximizing their growth capabilities by rethinking their approach to working capital. Embracing technology and understanding the profiles of effective financial leaders can help smaller firms navigate a complex financial landscape, ultimately fostering resilience and driving growth.

To explore the full report and benchmark your operations, visit Visa’s dedicated site: Visa Working Capital Index. The findings not only provide insights into managing liquidity but also offer a roadmap for small businesses aiming to thrive in today’s volatile economic climate.

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This article, "CFOs Shift Focus: Working Capital Transforms into Growth Engine" was first published on Small Business Trends

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