Growth corporates in Latin America and the Caribbean (LAC) rely on trade finance instruments such as letters of credit (L/Cs) and invoice factoring as their primary working capital solutions, according to the 2023-2024 Growth Corporates Working Capital Index.

In contrast, working capital loans and overdrafts from corporate bank accounts are the go-to options for nearly 50 per cent of firms in Europe, the study by PYMNTS Intelligence and Visa reveals.


Growth corporates are the US$50 million to US$1 billion businesses powering the digital economy according to the study, which says their working capital needs reflect the dynamic nature of the futures they are shaping.

The study examines how 873 CFOs across five industries and 23 countries use working capital to fund their strategic growth, and what the payments ecosystem must do to move beyond the status quo solutions to grow with them.

L/C advantages

In LAC, companies in the US$50 million to US$250 million revenue range have the highest utilisation of bank lines of credit, invoice financing/factoring and third-party revolving credit facilities, which enable these companies to bridge their working capital gaps and maintain their operations.

The study shows how L/Cs assure both buyers and sellers in international trade transactions, while invoice factoring allows companies to access immediate funds by selling their accounts receivable at a discount.

The 2023-2024 Growth Corporates Working Capital Index can be downloaded on request from here.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.