PYMNTS Intelligence found that 61% of surveyed North American firms use multiple financing solutions.

Businesses are using several forms of working capital to pay bills that previously could have been covered by customer receipts arriving earlier. Bank credit lines, corporate cards and supplier payment terms give firms different ways to finance the interval between purchasing goods and collecting payment.

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European Central Bank findings show demand for short-term financing rising as credit line availability falls. In North America, PYMNTS Intelligence research highlights the use of multiple financing sources and a shift toward borrowing for cash flow management and emergencies.

The ECB’s third-quarter Survey on the Access to Finance of Enterprises found that a net 12% of euro area businesses reported greater need for trade credit, while a net 11% reported greater need for credit lines. Credit line availability registered a negative net balance of 4%. Trade credit availability was broadly unchanged.

Trade credit enables a business to receive goods or services before paying the supplier. A buyer seeking more of it is asking the supplier to carry the unpaid balance longer or extend additional purchasing capacity. The ECB findings indicated that companies want more financing through their commercial relationships while also seeking more bank credit.

North American middle-market businesses already use several funding sources. The fourth edition of PYMNTS Intelligence’s Working Capital Index found in September that 83% used external working capital and 61% used at least two solutions.

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