Working capital is the lifeblood of any business, ensuring that it can operate smoothly and meet its short-term obligations. It provides the essential funds to cover daily expenses such as payroll, inventory purchases, and utility bills, which keeps the business running efficiently. Moreover, sufficient working capital allows a company to seize new opportunities, whether investing in new projects or responding swiftly to market changes. Working capital is a financial cushion supporting stability and growth, fostering a resilient and adaptable business environment.
By leveraging a commercial card program, companies can take charge of their procurement processes, reduce reliance on traditional bank loans, and foster a more agile and responsive business environment. The card’s detailed reporting features and spending controls empower businesses to maintain robust oversight of their expenditures, ensuring that every dollar is wisely invested in their growth journey.
Streamlined expense management
A commercial card program simplifies the process of managing and tracking business expenses. With detailed transaction records and real-time reporting, businesses can easily monitor their spending, identify trends, and make informed financial decisions. This oversight level helps prevent overspending and ensures that funds are used efficiently. Additionally, the expense management system reduces the time and effort required for manual expense tracking, enabling employees to concentrate on strategic responsibilities by streamlining reconciliation duties.
Enhanced cash flow control
Integrating a commercial card program into your working capital strategy can significantly enhance your control over cash flow. Extending payment terms and consolidating purchases empowers companies to manage their liquidity, ensuring funds are available when needed. This flexibility is particularly valuable during revenue fluctuations or unexpected expenses, as it facilitates smoother financial operations and reduces the risk of cash flow disruptions.
Virtual cards
According to Visa’s Growth Corporates Working Capital Index, “CFOs who use virtual cards as a working capital option are strongly correlated to higher buyer-supplier payment integration, and many recognize their use for strategic capital deployment. At the same time, virtual cards’ use as a working capital option is expected to triple next year.” Virtual cards offer a flexible working capital solution to expedite supplier payments and meet urgent business requirements. The automation benefits of virtual card usage are significant. Transactions made with virtual cards are automatically recorded in accounting systems, simplifying bookkeeping and reconciliation processes. Virtual cards can seamlessly integrate with ERPs (Enterprise Resource Planning), providing essential data for accounting, travel, expense tracking, and procurement.
Arvest is a steadfast ally to growing companies and businesses and offers a strategic advantage by utilizing a commercial card program as working capital. Arvest Purchasing Cards and ePayables can empower businesses to enhance cash flow management effectively by offering immediate access to funds for essential purchases and operational expenses. Learn more about the Arvest Purchasing Card and Arvest ePayables today.