As bank credit tightens, businesses layer multiple working-capital sources

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As bank credit tightens, businesses are layering multiple working-capital sources. European businesses’ demand for supplier credit and credit lines has both increased, while North American businesses are borrowing more for cash-flow management and emergencies. A European Central Bank survey shows that a net 12% of euro area businesses need more trade credit and a net 11% need more credit lines, while the net balance for credit-line availability is -4%. A PYMNTS Intelligence survey shows that 83% of North American mid-market businesses use external working capital, with 61% using at least two solutions; the proportion of customer receivables collected early fell from 35% to 12%.