The inventory conundrum
According to the Visa 2024-2025 Global Working Capital Index (WCI), the average company’s working capital needs have increased by 5.3%.¹ This increase highlights the global strain businesses are experiencing due to higher inventory costs.
Digital payment solutions: The modern advantage
The WCI has tracked the rising use of corporate and virtual cards, with 14% of surveyed Growth Corporates (mid-market companies on an upward trajectory) utilizing these tools in 2024, up from 10% in 2023.¹ Virtual cards, which are digital payment instruments managed through online platforms, offer numerous benefits that can help businesses manage their working capital more effectively. Here’s how they can help make a significant difference:
Conclusion
The benefits of flexible cash flow management, real-time control, streamlined operations, cost savings, enhanced security, and stronger supplier relationships make virtual cards a valuable tool for businesses. Increasingly, we’re seeing businesses want bankers with lending experience and working capital knowledge of their specific industry and region. By offering these customized solutions, financial institutions can empower businesses to stay resilient and competitive in an ever-changing economic landscape. When it comes to managing higher inventory costs, those who leverage digital payment solutions can effectively position themselves for success.
About the author
Ben Ellis
SVP, Global Head of LMM Segment at Visa