This is not your grandfather’s working capital landscape. The fundamentals of today’s credit and underwriting ecosystem are shaking their previous moorings to operating cash flow, becoming a function of how effectively companies pad their balance sheets.
New report from Federal Deposit Insurance Corporation (FDIC). (Federal Deposit Insurance Company), Agency 2026 risk reviewhighlights the ongoing reshaping of credit markets. Among other risks, the report noted a growing shift in agribusiness from income-based to collateral-based lending, where credit solutions are less supported by profitability than farmland and other assets.
While some farmers borrow not because their operations are throwing off strong cash flow but because of poor income, others are taking advantage of new ways of organizing their working capital.
For the rest of the B2B landscape, this could have several implications. First, the composition of the balance sheet is more important than ever. Assets that can be valued, pledged, and converted into cash have become central to financial strategy. Second, the distinction between operating performance and financing capacity is widening.
A company can face short-term income pressures while maintaining access to capital, provided its assets are strong.
See also: Financial managers turn working capital into a return strategy
Advertisement: Scroll to continue
Working capital lessons for off-farm agriculture
As economic conditions become more volatile and traditional indicators of borrower health become less reliable, lenders are increasingly turning to assets as a source of stability.
For decades, an organization’s working capital strategy has focused on optimization, tightening receivables, expanding accounts payable, and managing inventory turnover. This model assumes a stable and predictable cash transfer. What emerges instead is a system in which access to liquidity becomes increasingly contingent on the choice of assets, or what can be pledged, securitized, and structured into financing.
Agricultural data confirm that farmers facing poor income do not necessarily lose access to credit. Instead, they rely on the value of their land to continue their operations and, in some cases, to restructure existing liabilities. The FDIC noted that “exuberance in farmland ownership” supported loan modifications even as operating losses mounted.
What emerges from this shift is a more layered concept of working capital. Instead of a linear flow from revenue to cash, liquidity is pooled from multiple sources, many of which are on the balance sheet rather than the income statement.
Land serves as a foundational asset for agribusiness, providing access to financing even when operating returns are under pressure. In other sectors, equivalent assets are less tangible but no less important. Receivables backed by strong counterparties, inventory with predictable demand, and long-term customer contracts are used to support financing structures that go beyond traditional bank lending.
The expansion of private credit markets has accelerated this trend. As the FDIC report highlights in its discussion of lending by non-deposit financial institutions, credit is increasingly being provided through channels that are more flexible in how collateral is evaluated and risk is structured.
These channels are often more willing to underwrite against asset pools rather than rely exclusively on income metrics.
Read also: Uncertainty is complex, but working capital strategies should be simple
New working capital stack
The FDIC’s findings do not suggest that agriculture is in an immediate crisis. Rather, it highlights a sector in transition, where the fundamentals of lending are being recalibrated. Income remains important, but it is no longer the only factor that determines financial ability.
By leveraging their asset base, farmers are increasingly able to improve liquidity, manage timing mismatches between expenses and income, and position themselves for future opportunities. For these borrowers, guarantees are not just a backstop; It’s a tool.
In this context, working capital becomes a cross-functional capability rather than a narrow financial measure. It lies at the intersection of finance, operations and strategy. Companies that can access liquidity through multiple channels are better positioned to manage volatility, invest during downturns and respond to changing market conditions.
The Corporate Working Capital Growth Index from PYMNTS Intelligence and Visa shows that 85% of middle market companies They use working capital solutions.
Ben EllisSenior Vice President and Global Head of Large and Medium Markets at Visa business solutionstold PYMNTS in an interview published in March that it is among the lowest-performing companies that have adopted AI Working capital managementCash flow unpredictability subsequently decreased from 68% to 17%.
For all of PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
