Optimism has ebbed and flowed across countries and continents. When asked to rate optimism from a scale of 1 to 52, in Argentina, optimism increased from 4.06 to 4.22 this year compared to last. This may be linked to new policies aimed at tackling high inflation in the country. In addition to this, Spain’s optimism outlook increased from 3.89 to 4.11, likely due to its strong economic growth. However, not everyone is feeling quite so strongly.

In Western Europe, responses were more temperate. Optimism in France fell most dramatically (4.05 to 3.94) and Germany (3.84 to 3.74), potentially due to a reflection of the continued geopolitical economic upheaval across the continent. 

Early payments continue to be on the rise

It is unsurprising, against this current economic backdrop, that early payment options are becoming increasingly popular, with over three fifths (63%) of suppliers expressing interest - up significantly from 56% in 2019. 

This trend highlights the growing demand for liquidity and cash flow stability, especially as only 42% of buyers are paying on time, a steep decline from 54% in 2019.

For suppliers, the top reasons for utilizing early payment options is to access liquidity and bridging cash flow gaps (both 24%). Improving payment predictability is also a reason for a fifth (20%), as well as strengthening business relationships (14%).

Agility conquers all

Despite ongoing uncertainty, businesses remain optimistic about the future. However, they also recognise the need to stay agile, adapting their financial strategies to navigate shifting market dynamics. Many businesses are turning to diverse external capital solutions, with over a quarter (26%) using credit cards, followed by lines of credit (23%), early payment on invoices (22%) and debt factoring (21%). 

The year ahead

When asked about what is on their mind for the year ahead, more than half (52%) of businesses said growth, followed by artificial intelligence (28%) and inflation (27%).

The role of artificial intelligence (AI) in finance is rapidly gaining traction, with 92% of finance leaders anticipating the use of AI-generated insights within the next 12 months. Additionally, nearly half (45%) of finance functions plan to recruit AI specialists, underscoring the strategic importance of digital transformation in driving business resilience.

Bob Glotfelty, Chief Growth Officer, Taulia, comments: “Despite ongoing trade tensions and shifting economic conditions, it’s encouraging to see businesses remain optimistic about the year ahead. As organizations navigate the evolving landscape, access to flexible working capital solutions is becoming even more critical. By unlocking liquidity, these solutions help businesses strengthen their cash flow, adapt to market changes, and build resilience across their supply chains."