Working Capital Survey 2024: Most Expect Growth This Year, but There’s a Catch

Thriving companies will need more working capital this year even as high interest rates make it more expensive. This year’s report reveals how companies can adapt. 

Despite persistent inflation, geopolitical conflict and other pressures, most business leaders expect to see growth this year in both their companies and their country’s economy, according to C2FO’s new Working Capital Survey for 2024.

This year’s survey includes insights from more than 1,000 executives and business leaders from the United States, India, Mexico and the United Kingdom. Respondents were asked for their views on the current economic climate, their use of working capital and their expectations for the coming year. 

Their economic optimism comes with a challenge. If growth happens as expected, businesses will need greater access to working capital so they can pay for more inventory, larger payrolls and other costs. And that’s happening as inflation and interest rates make borrowing money more expensive and more difficult to access.

As a result, more companies may need to explore the use of dynamic discounting, supply chain finance and other funding alternatives that aren’t as affected by high interest rates.

Key findings from the 2024 Working Capital Survey 

• 78% of respondents believe their companies’ revenues will grow during the coming year. And 32% believe their revenue will grow by more than 10%.
  
• 57% expect the economy in their country will improve this year.
  
• 24% of respondents say they do not have access to enough liquidity to run their businesses for an entire year.
  
• 42% expect higher interest rates to have a negative impact on their businesses.
  
• Only about 20% of respondents use dynamic discounting to access funding, but enjoys high approval ratings. 83% of supplier users gave it high marks for ease of use.
  
• 54% expect a positive impact from artificial intelligence on their companies.

DOWNLOAD THE REPORT HERE