2026 Working Capital Index Shows Middle Market CFO Shift From Growth to Cash Flow

In July 2026, the PYMNTS Intelligence Working Capital Index, Fourth Edition, revealed a notable shift among middle-market CFOs and treasurers in the United States and Canada. The report, titled "Working Capital Has Lost Its Strategic Edge," compared survey results from 120 finance professionals against three previous editions conducted in 2025, 2024, and 2023. The index, which measures working capital management, experienced its first decline since its inception four editions ago, falling by 6% to 51.6.

Key findings indicate that businesses are now prioritizing cash flow management over growth. Among those utilizing working capital financing, 69% utilized bank lines of credit, reflecting a notable increase from 57% in the prior year. Additionally, corporate and virtual card use surged, suggesting a greater reliance on flexible financing options.

A critical shift occurred in payment behavior. The percentage of incoming payments received on the due date dropped significantly, from 35% to just 12%. This change in cash flow dynamics led to a corresponding decrease in early payments to suppliers, dropping from 37% to 17% of total bills. As a result, firms are now paying fewer suppliers ahead of schedule, which can impact their relationships and the availability of discounts.

CFOs and treasurers are increasingly seeking stronger advisory relationships with banks, alongside enhanced flexibility to manage cash flow effectively. This shift highlights the evolving priorities of middle-market companies as they navigate the complexities of working capital management. The report further explores how leading firms are anticipating cash needs, leveraging forecasts, and deciding when to act, providing insights for other businesses striving to maintain financial resilience.