# c2fo Outlook

## The State of Working Capital
Discover how businesses are adapting to the higher cost of money and finding the funds they need to thrive.

## Mixed News on Inflation
Conditions have improved, but businesses are still worried. Here’s why inflation is still the No. 1 threat.

## Solving the Liquidity Problem
Nearly 60% of those surveyed would feel the impact if payments were delayed a month.

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## TABLE OF CONTENTS

### What’s Inside
Most people expect economic growth, but some concerns still remain.

1. Methodology
2. Economic Outlook
3. Executive Summary
4. Inflation’s Impact
5. Solving the Liquidity Problem

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## METHODOLOGY

### About the Survey
C2FO surveyed business leaders in four key markets in January 2024 to assess the state of working capital and its impact on businesses.

### Total Number of Respondents
- 1,079 respondents from four regions:
  - Mexico: 220
  - United States: 429
  - United Kingdom: 216
  - India: 214

### Roles
- 80% of survey respondents are executives.

### Company Type
- 65% of survey respondents have been in business for over 10 years.

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## EXECUTIVE SUMMARY

### Business Leaders Expect Growth in 2024, but Working Capital Could Be a Problem
Most respondents think their companies and economies will grow over the coming months, even with concerns about inflation and higher interest rates.

- **78%** of respondents expect their businesses’ revenue to grow in 2024.
- **32%** believe their businesses will grow by more than 10%.
- **88%** of Indian respondents expect their businesses to grow, the highest among surveyed countries.

### Working Capital and Liquidity Concerns Remain
- **59%** said they would feel an impact if payment terms were extended by 30 days.
- **24%** of suppliers don’t have access to enough liquidity to operate for a year.
- **42%** of suppliers use dynamic discounting to access funding.

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## ECONOMIC OUTLOOK

### Across Regions, Businesses Consistently Forecast Growth in 2024
Majorities expect their businesses to increase revenues over the coming months.

### What people are saying
- “The economy is a roller coaster. Inflation, employee shortages and cost of living are out of control.”
- “The cost-of-living crisis has made people reluctant to spend.”
- “Inflation is getting better, and prices are coming down.”

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## Hiring Is Expected to Grow Slightly or Hold Steady
- **54%** expect a positive impact from AI.

## Inflation Remains the No. 1 Threat for Businesses
- **60%** identified inflation as a threat for 2024.

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### 67% Expect to Raise Prices, but Increases Should Be Relatively Mild
- **42%** of respondents expect increases of 5% or less.
- **17%** plan hikes of 6% to 10%.

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## INTEREST RATES

### Interest Rates Are Another Big Question Mark for 2024
- Interest rates tied for sixth on potential concerns. They limit growth.

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## Higher Interest Rates Make It Harder for Businesses to Access Working Capital
### Among respondents who were negatively impacted because they couldn’t access funding
- Blamed high interest rates as the most cited obstacle.

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## Slower Payments, Lack of Liquidity Pose Serious Threats to Businesses
- 59% would feel the impact if payment terms were extended by 30 days.
- 1 in 4 said they do not have enough cash flow to run their businesses for 12 months.

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## SOLVING THE LIQUIDITY PROBLEM
### To Adapt, Many Companies Are Turning to Solutions Outside Traditional Lending
- Supply chain financing: Partners with banks to pay invoices ahead of schedule.
- Invoice factoring: Suppliers sell receivables to a factor.
- Dynamic discounting: Early payment in exchange for a discount.

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## THE BOTTOM LINE
### How Smart Companies Can Thrive Over the Next 12 Months
- Embrace opportunities for growth.
- Have a plan for managing interest rates and other challenges.
### Explore new, innovative solutions
- C2FO offers a modern platform for increased operational efficiency.