Chief Financial Officers (CFOs) are expressing confidence for the upcoming months, influenced by recent research from the Federal Reserve Bank of Richmond and the Federal Reserve Bank of Atlanta. This optimism emerges at a notable time as PYMNTS Intelligence, in collaboration with Visa, plans to release new insights on how growth-oriented businesses are leveraging working capital to seize potential opportunities. With the ever-evolving business landscape, understanding the strategic application of working capital remains a crucial aspect for many companies striving to connect their optimism with tangible outcomes. This situation demands careful consideration of liquidity as a bridge between identified opportunities and realized benefits.
Research on CFO confidence conducted by the Fed Banks in collaboration with Duke University’s Fuqua School of Business reported a rise in economic optimism. Its findings outline how decreased uncertainty has positively altered financial decision-makers’ outlook in Q3 of 2025, despite persistent concerns about tariffs and trade policies. While tariffs remain a challenge, companies less affected by trade worries foresee more robust economic growth with projections for GDP growth of 2% in contrast to the 1.6% forecasted by companies anticipating tariff impacts. This situation reveals a pattern in which less trade-concerned firms are poised for more substantial revenue and employment growth moving forward.
What are the Future Expectations?
Businesses have increased spending in recent months, reflecting their inclination towards growth despite challenges such as tariffs and trade insecurities. The percentage of firms reporting increased expenditure rose to 40.9% in the recent quarter from 36.3% previously. Liquidity and working capital solutions have become pivotal for translating positive economic projections into reality. Having sufficient liquidity allows CFOs to pursue investment opportunities, increase hiring, and absorb any volatility in costs.
How is Working Capital Viewed Differently?
When considering working capital’s evolving role, Visa’s Darren Parslow noted that CFOs increasingly view it as a growth tool rather than merely a safety net.
“We’re seeing that CFOs want to use working capital more strategically,” Parslow commented, emphasizing a shift in mindset.
Utilizing working capital effectively goes beyond simple financial safety, offering businesses a pathway for driving future growth by optimizing cash flow management platform.
The task for banks and FinTech firms servicing growth corporates, which typically range in revenue from $50 million to $1 billion, lies in reducing the complexity tied to accessing external liquidity. Current procedures still involve manual processes and lack transparency, which can hinder businesses aiming for growth. Addressing these issues creates an opportunity to streamline cash handling and improve working capital efficiency. Reducing friction in the access to liquidity presents a substantial area of focus where FinTech can assist by harmonizing receivables, payables, and treasury functions, presenting a more seamless experience for the user.
The central bank’s CFO survey reinforces the necessity of developing advanced liquidity management capabilities. Firms are recognizing the importance of refined financial tools, such as dynamic discounts, early invoice payments, or virtual card programs, thus improving the immediate financial outcomes and enhancing operational efficiency without compromising oversight. Companies engaged in these strategic financial practices position themselves to capitalize on growth opportunities effectively.
“They are viewing it less as a safety net and more as a tool to drive growth.”
Strategic management of liquidity continues to define the playbook for growth corporates. As companies forge ahead with enhanced optimism, their ability to tap into and utilize working capital efficiently becomes an instrumental part of their growth strategy. This has created a situation where determination meets opportunity through practical financial management.
Growing confidence among CFOs about future business prospects is likely to fuel further interest in leveraging working capital. Such a trend is set against previous sentiments where uncertainty dominated decision-making discussions. By applying liquidity more strategically, companies better position themselves to advance on emerging opportunities, forging paths in pursuit of expansion while remaining prepared to meet future challenges head-on.
