Asia Pacific's mid-sized companies are grappling with a profound mismatch between their urgent working capital demands and the outdated financial tools at their disposal, according to Visa's newly released 2025-2026 Growth Corporates Working Capital Index. Released today from Singapore, the index—based on surveys of over 1,300 CFOs and treasurers across 23 countries and territories, including 298 from the region—highlights how inflation, rising interest rates, and liquidity squeezes are forcing growth corporates, defined as firms with $50 million to $1 billion in annual revenue, to rethink cash flow as a core growth engine.

Nearly half—47%—of these Asia Pacific growth corporates report not using any working capital solutions, largely because existing options fail to match their operational realities. Longer cash cycles, persistent payment delays, and the need for swift cross-border liquidity are commonplace, yet traditional products remain rigid and generic, ill-suited to the region's diverse industries from manufacturing to tech services. This misalignment is particularly acute in fast-moving markets like Southeast Asia and Greater China, where businesses must navigate volatility daily.

WORKING CAPITAL TURNS STRATEGIC

High-performing CFOs, however, are flipping the script, transforming working capital from a defensive necessity into a proactive growth lever. By leveraging early supplier payments, virtual cards, and flexible funding, these leaders are accelerating receivables and boosting liquidity to seize market opportunities. The index quantifies the payoff: firms adopting such solutions reap an average $17.7 million in annual bottom-line benefits, equivalent to a 4.3% revenue uplift. Late customer payments alone drain an average $15.7 million yearly, but digital card payments cut those losses by around 10%.

Usage for opportunistic expansion is surging too—9% of firms tapped working capital solutions to fund unplanned growth, up from 5.6% in the prior year. "High-performing Asia Pacific CFOs are turning working capital into a growth lever, with digital payment tools reducing late-payment losses by around 10%," the report states, underscoring how improved cash visibility directly enhances competitiveness. Cards, once mere transactional instruments, are evolving into embedded finance tools integrated with ERP systems, enabling real-time liquidity management.

AI LEADS OPTIMIZATION WAVE

Asia Pacific firms are at the forefront of tech adoption, with 61% deploying AI and machine learning for working capital tasks like forecasting, risk scoring, and automated approvals. This embedded analytics push reflects a broader hunger for digital platforms that simplify credit management and deliver capital on-demand. Amid volatile markets, CFOs prioritize tools that align with business speed—virtual cards, instant approvals, and sector-tailored platforms that understand unique cycles, supplier dynamics, and capex needs.

The index reveals shifting expectations for banks: finance leaders demand industry-specific expertise from relationship managers who grasp local nuances, rather than one-size-fits-all approaches. In markets like India, Indonesia, and Australia, where cross-border trade booms, this means digital rails that unlock trapped liquidity without bureaucratic delays. Visa's data shows these innovations not only build resilience but also free capital for reinvestment, turning economic headwinds into tailwinds.

CFOs PRESSURE BANKS TO EVOLVE

"CFOs across Asia Pacific want flexible, sector-specific tools that match their operational realities," said Chavi Jafa, Head of Commercial and Money Movement Solutions, Asia Pacific, Visa. "Our data shows that agile, digital-first strategies and smarter forecasting are helping companies stay resilient and reinvest freed-up capital into growth." Jafa emphasized Visa's ecosystem partnerships to deliver solutions like ERP-integrated virtual cards and digital enablers that accelerate approvals and strategic liquidity.

This call to action comes as Asia Pacific growth corporates face intensified pressures. Inflation erodes margins, interest rates crimp borrowing, and geopolitical tensions disrupt supply chains—yet 47% idle without solutions, missing out on millions. Top performers, by contrast, report tangible gains: the 10% drop in late-payment losses via digital tools alone preserves vital cash. AI's 61% adoption rate positions the region as a leader, but scalability hinges on banks catching up with tailored, digital-first offerings.

REGIONAL IMPLICATIONS BROADEN

The index's three core themes—product misalignment, strategic leveraging, and bank evolution—resonate across eight industry segments surveyed, from retail to logistics. In high-growth hubs like Singapore and Hong Kong, virtual cards are gaining traction for B2B payments, reducing days sales outstanding (DSO) and inventory days. Emerging markets like Vietnam and the Philippines see even greater potential, where mobile money's explosive growth intersects with corporate needs.

Visa's report, accessible at workingcapitalindex.visa.com, signals a tipping point. As CFOs demand on-demand liquidity through digital rails, banks risk obsolescence without innovation. Forward-thinkers are already partnering with fintechs and payment giants like Visa to embed finance seamlessly. For Asia Pacific's $50 million-$1 billion firms, the message is clear: in a world of flux, working capital agility isn't optional—it's the new benchmark for survival and scale. High performers prove it, unlocking $17.7 million averages while laggards lag, their cash cycles choked by legacy tools.