Working Capital Has Lost Its Strategic Edge
Middle-market firms now prioritize cash flow over growth as receivables hit due dates.
In brief
Middle-market firms now prioritize cash flow over growth as receivables hit due dates. Middle-market firms shifted from growth to cash flow management after customers stopped paying early. Originally reported by Pymnts.
Receivables Hit Due Dates
Two-thirds of receivables now land exactly on the due date, and seven in 10 firms say they no longer know which week their money will arrive.
Cash Flow Shift
Middle-market firms pay the way they’re paid, so when early money stopped coming in, it stopped going out.
Borrowing Trends
Use of external working capital reached 83%, and 61% of firms now stack two or more solutions.
Predictability Edge
Every top performer uses AI in treasury, so do 97% of bottom performers, with 70% reporting constant financing needs.
Cash Cycle Difference
Top performers run cash cycles 39 days versus 63 days at the bottom, with clear ai returns.
Here's the gist
Middle-market firms shifted from growth to cash flow management after customers stopped paying early.
