With banks constantly looking to achieve growth objectives and remain competitive, middle-market growth corporates present an opportunity hidden in plain sight. These companies, which in some cases reach $1 billion in annual revenue, are in fact large enterprises in the making: attractive targets for banks. 

As growth corporates continue to look at working capital solutions as an important part of their growth strategy – helping them to enter new markets, expand their products and upgrade their systems – banks are exceptionally well-positioned to support these working capital needs. 

According to Visa’s 2024-2025 Middle-Market Growth Corporates Working Capital Index, growth corporations have become adept at using working capital solutions, such as working capital loans, bank lines of credit, overdrafts from corporate bank accounts, corporate and virtual credit cards, and invoice financing and factoring, to take advantage of global opportunities—particularly during times of economic uncertainty. 

The Index found that the use of working capital solutions as an important part of a corporate growth strategy, rather than merely as an emergency cash flow stopgap, has increased by 16%. It’s worth noting that 48% of growth corporates that have used working capital solutions saw improved working capital ratios, while one-quarter saw improved cash conversion cycles. 

Additionally, the Index revealed that those growth corporates using working capital solutions are nearly twice as likely to have experienced improvements. Evidently, these are effective solutions in optimising business health and operational efficiencies.

As middle-market growth corporates increasingly view working capital solutions as a much-needed tool for supporting business efficiency and development, banks have an opportunity to bring such solutions to those who have not yet taken advantage of them.

Existing working capital solutions aren’t tailored to middle-market needs 

With a growing need for working capital support, growth corporate CFOs and Treasurers are looking for smooth access to working capital solutions. However, according to the Index, nearly one-third say their working capital options don’t match their business needs. 40% of growth corporates in Central Europe, the Middle East, and Africa cited this as their largest pain point.

This stems from the fact that banks have traditionally focused on catering specific products to small businesses or large enterprises, and not the middle market. To meet the unique needs of this business segment, banks have an opportunity to bring deep industry expertise to the table, moving beyond generic financial services to tailored, sector-specific insights and products. 

Capitalising on a growth opportunity  

Nearly 23% of middle-market growth corporates have expressed a desire for 

banks to better serve their financial needs. They would like to see banks, who have both the lending experience and working knowledge of their industry and region, design working capital solutions that fit their particular business requirements. 

By customising loan products and payment schedules that also sync with client’s dynamic cash flow patterns, banks can deliver personalised financing solutions, thereby winning the trust and business of growth corporates. 

Growth corporates are eager to take advantage of flexible solutions that offer them the ability to tap into external working capital for whatever strategic or tactical purpose is most relevant at that point in time. The Index revealed that despite their popularity, only 36% of growth corporates were able to secure traditional working capital loans over the previous year. Instead, there is a growing preference for solutions that offer operational agility and quick access to funds without the need to apply for a loan when the need for funds presents itself.

Banks can meet this need through solutions with revolving credit, such as bank lines of credit, as well as with corporate and virtual card solutions. The Index reveals the use of corporate and virtual cards is on the rise, going from 10% in 2023 to 14% in 2024. In addition to their flexibility, virtual accounts also come with enhanced tracking features and improved cash flow predictability. Employment of bank lines of credit has also increased by  26% among growth corporates, compared to 19% last year. 

Visa is one such company, through which banks can offer middle-market clients business card and virtual card solutions; these will clients to better manage cash flow and take advantage of external working capital in order to meet strategic growth objectives. Such solutions automate expense tracking and seamlessly integrate with job-costing systems for enhanced efficiency. They address growth corporates’ desire for an easy-to-access, well-rounded financial solution: one that comes from a trusted advisor. 

For banks, offering customised working capital solutions that meet the unique needs of middle-market growth corporates is an ideal way to capture this important market segment, taking advantage of rapidly growing businesses that have been hiding in plain sight.