The Strategic Relevance of Card Payments for Working Capital Management

How credit card payments can improve your cash flow: 

Card payments (and virtual cards payments) have emerged as a valuable tool for businesses looking to optimize working capital management. By leveraging commercial cards payments for all suppliers, companies can extend their payment cycles, improve cash flow, and preserve liquidity, while maintaining supplier relationships.

A key advantage of card payments is their ability to extend Days Payable Outstanding (DPO), allowing businesses to delay actual cash outflows while ensuring that suppliers receive payments on time or even in advance.

The entry of new technological players into the payment services sector is enabling companies to pay suppliers who do not accept card payments. These players, working in conjunction with  card issuers, convert card transactions into bank transfers, allowing businesses to use credit cards for 100% of supplier payments, regardless of transaction size or industry.