How Treasury Teams Can Double Down on Working Capital Strategies in Challenging Times

Why It Matters

Optimising working capital directly improves liquidity and lowers cost of capital, giving firms a competitive edge in uncertain economic conditions.

Key Takeaways

• BofA’s Corporate Payment Undertaking removes receivables purchase agreements.
• Card‑to‑Account lets buyers pay by card, suppliers receive cash instantly.
• Virtual Payables Direct expands finance to long‑tail suppliers.
• AI‑driven invoice approval cuts processing from weeks to seconds.
• Supply‑chain resilience strategies increase costs but mitigate geopolitical risk.

Pulse Analysis

In today’s unpredictable macro environment, every dollar of free cash becomes a strategic lever. Companies are turning to sophisticated working‑capital programs to stretch payment terms, lower borrowing, and build a reserve for opportunistic M&A. Bank of America’s Global Payments Solutions team positions itself as a partner, offering a suite of supply‑chain finance products that go beyond the traditional top‑20‑percent supplier focus. By extending financing to the long tail, firms can unlock hidden liquidity without inflating headline debt, a crucial advantage when balance‑sheet optics matter to investors and regulators.

The rollout of BofA’s Corporate Payment Undertaking, Card‑to‑Account, and Virtual Payables Direct illustrates how product innovation is reshaping the payables landscape. The Corporate Payment Undertaking eliminates the need for a receivables purchase agreement, simplifying onboarding for smaller vendors. Card‑to‑Account lets buyers settle invoices with a corporate card while suppliers receive the full invoice amount in cash, preserving cash flow on both ends. Virtual Payables Direct extends these benefits to a broader supplier base, turning previously unfinanceable transactions into liquidity‑generating opportunities. This expanded toolbox helps corporates avoid the materiality concerns that arise when supply‑chain finance is classified as debt.

Digitisation is the engine that powers these advances. AI‑enabled invoice verification can reduce approval cycles from weeks to seconds, freeing treasury teams to focus on high‑value risk management rather than manual processing. API‑driven data integration provides a single source of truth for purchase orders, cargo receipts and payment terms, enhancing visibility and decision‑making. As more firms adopt these digital workflows, the trade‑finance ecosystem will shift toward faster, more transparent transactions, reinforcing resilience against supply‑chain shocks and geopolitical disruptions. The convergence of innovative financing and technology is setting a new standard for working‑capital optimization in challenging times.