Corporate finance is particularly undergoing innovative changes in small and medium -sized businesses. According to recent studies in the driving capital index, the third annual growth company of VISA, it indicates that driving capital is now a pivotal growth engine, not just a buffer for danger. This evolution offers abundant opportunities for small business owners to take advantage of new tools and strategies to improve liquidity management.
The VISA’s index, which surveyed more than 1,400 CFOs and financial companies in 10 industries and 23 countries, emphasizes two profiles of financial leaders in this environment: strategic planners and adaptive accelerators. Both types use technology and financial tools to explore problems and capture opportunities.
Strategic planners not only protect capital, but also adopt a long -term view that actively utilizes growth and supplier relationships. On the other hand, the accelerators that can be adaptable are focused on immediate demands, and quickly distribute driving capital solutions to manage volatility or capture unexpected growth opportunities. In particular, for this purpose, the use of the company card is tripled worldwide, and the transition to the agility of the finance.
Lauren Hewings, the head of the driving capital solution of VISA, said: “The index of 2025-2026 emphasizes that the operating capital management is no longer defensive. Financial leaders are accelerating the supply of suppliers and shifting bonds by unlocking the average $ 19 million savings.” This statistics can often be a game change for small business owners who feel cash flow constraints.
Efficient cash management has a big impact on small businesses, and the index has a promising strategy. By utilizing AI and digital tools, CFO and Treasurers have reported a $ 19 million reduction effect through liquidity improvement. In fact, more than half of growth companies have begun to use AI for improved prediction and workflow automation. This approach led to an impressive increase in cash flow visibility and a significant decrease in financial uncertainty.
Small companies are especially well deployed to benefit from this trend. The ability to pay suppliers faster, negotiate better conditions, and utilize AI -based insights can mean the difference in survival and survival in a competitive market. VISA studies show that 53%of financial leaders use companies and virtual cards to improve cash flow. This trend emphasizes notable pivot. More business recognizes corporate cards as a strategic tool for financial growth as well as trading tools.
But like a new strategy, there is a challenge. The VISA’s index has a significant increase in loans, and it is currently in 27%of the world and complicates the financial options for many businesses. Small business owners can feel frustrated by traditional banks and often delay digital -first customized products. The transition to financial demand means that the re -evaluation of partnerships with a financial service provider may be necessary to match the immediate business goals.
The index also emphasized that small and medium -sized companies are increasingly demanding simplified digital solutions and on -demand financing that match real -time cash flow. For business owners, this means to provide flexibility and find a partner that can match the speed of today’s rapidly evolving market.
The advantage of pivotting strategy in driving capital management is clear. Financial leaders who accept these changes surpass their colleagues and show efficiency and innovation. As the veteran CFO is likely to use the company card strategically, it is clear that financial experience has a significant impact on the results of the organization.
In this new financial management era, small business owners can improve liquidity and maximize their growth capacity by rethinking the approach to driving capital. Accepting technology and understanding the profile of effective financial leaders can help small companies to explore complex financial environments and ultimately promote elasticity and growth.
To look at the entire report and benchmark your operation, visit the VISA’s dedicated site. Visa driving capital index. This results not only provide insights in liquidity management, but also provide roadmaps for small companies to thrive in today’s volatile economic environment.
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