Cash Forecasting Leaves the Monthly Meeting and Enters Real Time

Middle-market firms have been navigating uneven demand, higher borrowing costs and persistent supply-side volatility. According to Visa’s Growth Corporates Working Capital Index 2025 to 2026, done in collaboration with PYMNTS Intelligence, which surveyed 1,457 CFOs and treasurers worldwide, working capital has become a central operating concern rather than a back-office metric, as finance leaders look for ways to preserve liquidity while supporting growth.

As a result, finance teams are placing greater emphasis on receivables readiness, faster access to funds and tighter coordination across payables and cash management. Working capital is now viewed as both a defensive buffer and a strategic resource.

Limited Visibility Remains a Structural Challenge

Despite this heightened focus, many middle-market firms continue to operate with incomplete views of their cash positions. Finance teams must grapple with fragmented data across accounts, regions and payment methods still limits real-time visibility, making it harder for finance teams to anticipate short-term needs or respond quickly to shifting conditions.

These gaps have practical consequences. Firms with weaker visibility face greater difficulty forecasting liquidity, aligning supplier payments and identifying emerging risks. By contrast, companies with more integrated financial data report stronger working capital outcomes, underscoring how visibility has become a dividing line between resilience and exposure.

AI Gains Ground in Forecasting and Financial Operations

Artificial intelligence is increasingly being applied to close those gaps. The report documents growing use of advanced analytics and AI-driven tools in cash forecasting, scenario analysis and working capital management. Finance teams are using predictive models to identify patterns in inflows and outflows, flag potential shortfalls earlier and simulate alternative funding strategies.

Rather than replacing established treasury practices, AI is augmenting them. Forecasts that once relied heavily on historical averages are being supplemented with real-time signals, allowing teams to adjust assumptions as conditions evolve. This shift supports more frequent planning cycles and enables earlier intervention when liquidity pressure begins to surface.

Companies applying AI to supplier workflows gain clearer insight into payment timing and obligations, improving coordination between accounts payable and treasury functions. These capabilities help finance teams balance near-term cash needs with longer-term supplier relationships.

From Periodic Reviews to Continuous Planning

One of the clearest changes highlighted by Visa and PYMNTS is how finance teams plan. Traditional quarterly or monthly reviews are giving way to rolling forecasts informed by continuously updated data. Instead of waiting for formal close cycles, teams increasingly revisit cash positions throughout the month, using predictive inputs to recalibrate priorities.

This transition reflects a broader move toward operational finance. Planning is no longer confined to spreadsheets and static models. It is becoming an ongoing process that links forecasting directly to execution, from receivables acceleration to payment timing and short-term funding decisions.

Firms that integrate AI into both cash forecasting and supplier processes report stronger liquidity outcomes than peers, including improved readiness to collect receivables and faster access to working capital. These gains illustrate how analytics, when embedded into everyday financial operations, can translate into measurable performance.

The Action Gap Still Separates Leaders From Laggards

Yet the index also points to a persistent challenge: many organizations struggle to act on the insights AI provides. Predictive tools may highlight risks or opportunities, but internal friction often slows response. Approval delays, disconnected workflows and unclear ownership can dilute the impact of even the most accurate forecasts.

High-performing firms distinguish themselves by closing this gap. They connect forecasting outputs directly to operational decisions, enabling faster adjustments to payment schedules, funding strategies and supplier engagement. In these organizations, insight does not remain confined to dashboards. It informs action.

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