Achieving Financial Agility: 5 Strategies for Improving Working Capital

Working capital is the lifeblood of every small business. By understanding how to keep capital flowing, you can take advantage of growth opportunities—and be better prepared for hard times. Conversely, survival becomes challenging if your working capital slows to a trickle.

“Business owners tend to see cash flow as funds in the bank, but there’s so much more to it,” says Stephen Ball, Senior Vice President and Head of Business Banking at Byline Bank. “A knowledgeable business owner will be able to project upcoming highs and lows of cash requirements—knowing you have sufficient capital to not only get through these times but take advantage of profitable situations is key.”

For these reasons, capital management is usually top of mind for small businesses. In fact, 77% of small business owners reported concern about their access to capital in 2023. Fortunately, there are multiple ways that business owners can improve their capital management and help ensure they have access to capital when they need it most.

Here are five strategies for improving working capital and cash flow for your small business: