Agile CFOs: Leveraging Working Capital for Mid-Market Growth

In an increasingly dynamic global economy, the role of the Chief Financial Officer (CFO) is undergoing a profound transformation. What was once primarily a function focused on cost control and risk mitigation is now evolving into a proactive strategic lever. By the close of this year, the spotlight in corporate finance is shifting away from the traditional cost-cutting controller or the risk-averse gatekeeper, towards the adaptive CFO or treasurer. These leaders are redefining their playbooks, viewing market volatility not as a disruption to be merely absorbed, but as a fertile ground for competitive advantage and accelerated growth.

This pivotal shift is meticulously documented in the 2025/2026 Growth Corporates Working Capital Index, a comprehensive report produced by Visa in collaboration with PYMNTS Intelligence. The study illuminates a growing trend: an increasing number of finance leaders are approaching market volatility with a nuanced perspective, treating it not solely as a threat to be contained but as a strategic opening to act more decisively. This adaptability allows companies to transform potential headwinds into tailwinds, fostering resilience and driving expansion in competitive landscapes.

Working Capital: A Strategic Evolution from Buffer to Playbook

Traditionally, working capital has been conceptualized as a financial buffer—a reserve that companies tap into during times of crisis or unexpected challenges. However, the findings from Visa's report highlight a significant departure from this conventional wisdom. A notable number of organizations are strategically repositioning working capital, evolving it from a passive backstop into an active, dynamic lever for growth.

Among the surveyed "Growth Corporates," there has been a sharp increase in the adoption of working-capital solutions over the past year. Crucially, those enterprises that have more aggressively integrated these solutions reported disproportionate improvements in both operational efficiency and substantial cost savings. This indicates a clear correlation between proactive working capital management and enhanced financial performance.

Rather than passively awaiting external financing or grappling with supply chain bottlenecks, modern CFOs are increasingly deploying liquidity with precision and foresight. This includes strategies such as accelerating payments to key strategic suppliers to foster stronger relationships and secure favorable terms, proactively securing just-in-time inventory ahead of competitors to mitigate supply disruptions, and locking in advantageous terms when fleeting market windows present themselves. The overarching objective has transitioned from defensive cash hoarding to strategically acquiring time, certainty, and, in many instances, gaining market share.

The Technological Revolution Driving Financial Agility

Another salient shift unveiled by the Working Capital Index is the profound impact of technological integration. The most efficient performers in working capital management are those that have enthusiastically embraced a suite of advanced digital tools. These innovations—ranging from virtual and corporate cards to embedded payment platforms and sophisticated AI-driven forecasting engines—empower companies to unlock and deploy liquidity with unprecedented speed, a capability that was unimaginable just a few years ago.

The report specifically highlights the dramatic surge in the usage of corporate or virtual cards for working capital purposes, which has reportedly tripled year-over-year. More than half of the surveyed firms explicitly utilize these cards to accelerate receivable cycles, thereby enabling earlier cash collection without jeopardizing crucial supplier relationships. Furthermore, a substantial 60% of respondents have seamlessly integrated artificial intelligence tools into their forecasting and cash-management processes. By leveraging generative or agent-based AI models, these firms are significantly enhancing financial visibility and reducing the latency of critical financial decisions, allowing for more agile and informed responses to market shifts.

For the contemporary CFO, these technological innovations are far more than mere augmentations to the existing treasury stack. They are fundamentally redefining the very essence of the role itself. The adaptive CFO's approach is characterized less by sweeping, rigid strategic bets and more by an inherent readiness to pivot and capitalize on opportunities as they emerge. The emphasis has shifted from static annual plans to a dynamic portfolio of options: discerning which suppliers warrant faster payments, identifying which contracts to proactively renegotiate, and determining which raw materials to stockpile in anticipation of demand surges.

Redefining Performance Metrics: From Ratios to Responsiveness

In previous decades, the efficacy of working capital performance was typically assessed through familiar, backward-looking ratios such as Days Sales Outstanding (DSO) or the cash conversion cycle. However, many contemporary finance executives contend that the more indicative measure of success now is responsiveness—the sheer speed and efficiency with which capital can be mobilized to capture a fleeting opportunity or effectively neutralize an impending threat. Decision windows are progressively shortening, and liquidity options are becoming as inherently dynamic as the market opportunities they seek to address.

Effectively, the modern CFO is increasingly tasked with synthesizing the traditional prudence and meticulous management of a treasurer with the keen opportunism and strategic boldness typically associated with a venture investor. This fundamental redefinition is profoundly reshaping internal dynamics within the C-suite. When working capital performance directly influences the pace and trajectory of business expansion, the finance function can no longer remain a sequestered back-office service. It is transformed into a vital, frontline collaborator, working in close concert with product development, sales, and strategy teams, particularly when significant growth investments are on the table.

This evolution signifies a new era in financial leadership, where agility, technological prowess, and strategic foresight are paramount. The adaptive CFO, armed with innovative tools and a dynamic mindset, is poised to not only navigate but actively shape the future of corporate growth.