Visa Reports Significant Growth In Working Capital Efficiency In 2024

(RTTNews) - Visa (V) has released the findings from its second annual Global Growth Corporates Working Capital Index, highlighting a remarkable surge in working capital usage and efficiency. In 2024, the adoption rate of at least one working capital solution reached 81%. Additionally, top-performing companies saved an average of $11 million in interest and fees, reflecting a year-over-year efficiency increase of 300%.

The Index surveyed about 1,300 CFOs and Treasurers across 8 industry segments and 23 countries, all representing "Growth Corporates," organizations that generate between $50 million and $1 billion in annual revenue.

According to Visa, Virtual cards saw a 32% year-over-year increase in usage and were intrinsically linked to top-performing Index scores.

The Index notably highlights that CFOs and Treasurers of Growth Corporate businesses want relationship-based banking and personalized working capital solutions tailored to their specific industry, spending habits and business needs.

Five out of eight industries represented by survey respondents cited lengthy approval processes and uncertainty about approval outcomes as their most significant obstacles, as respondents expressed the need for bankers with both the lending experience and working knowledge of their industry and region to design working capital solutions that fit their business requirements. 90% of respondents reported negative consequences when working capital access was denied or took too long.