Working Capital Optimization

Effective working capital management for lasting financial stability

Reduce capital tied up in operations and increase overall liquidity
Manage working capital and improve accounts payable visibility to optimize cash flow
Align receivables and payables to streamline processes and reduce costs
Leverage short-term payment terms and early payment methods to support flexibility
Implement sustainable cash flow management for long-term stability and improved cash positions

Get in touch with us today and tell us what you need.

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Why Working Capital Optimization Matters

A targeted approach to working capital optimization improves liquidity, reduces tied-up capital, and strengthens financial flexibility. With effective working capital management, companies unlock potential across accounts payable, accounts receivable, and inventory management, driving a healthier cash flow and stronger balance performance.

Secure Liquidity

Increase liquidity by releasing trapped working capital and covering current liabilities effectively a direct way to improve your cash flow.

Reduce Capital Tie-Up

Analyze net working capital and identify areas for improvement to free up funds for future investments and strengthen the balance sheet.

Increase Management Efficiency

A structured working capital management approach helps to get insight into cash flow, control receivables, payables, cash inflows and cash outflows, and making processes more profitable and predictable.

Achieve Sustainable Improvement

Optimizing working capital leads to lasting gains in liquidity and financial stability.

Identify Risks Early

Continuous cash flow forecasting and monitoring of key performance indicators reveal potential issues from delayed receivables to slow cash conversion cycle performance.

Enable Effective Steering

Modern cash management systems and structured working capital management strategies ensure transparency and visibility, empowering teams to make informed, real-time decisions.

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What We Deliver for improved working capital

Our corporate finance advisory combines data-driven analytics with operational experience to make working capital optimization tangible not just on paper, but visible in liquidity and cash flow. We help businesses optimize their working capital position and achieve measurable results through practical working capital management strategies.

Our Services at a Glance:

Comprehensive analysis of net working capital with focus on receivables, payables, and inventory effective inventory management
Development of targeted strategies to optimize working capital levels and release tied-up funds
Creation of a clear plan with key metrics and benchmarks for full transparency and control
Design of strategies for factoring, procure-to-pay, and order-to-cash processes that strenghten cash management and liquidity
Implementation of automation and digital tools to reduce errors, accelerate reporting, and optimize cash flow
Establishment of policies for effective payment terms, cash discounts, and improved dunning processes to support cash culture
Continuous support for improving your working capital that is focused on effectiveness and lasting impact

Who Benefits from Working Capital Optimization

Mid-sized companies looking for working capital improvements
Private equity firms seeking more efficient management of their portfolio companies
CFOs and controllers aiming to better control payables, receivables, and optimize cash flow
Executives striving to improve working capital management and leverage best practices to ensure financial stability
Clients in Germany and the U.S. with bilingual consulting and real-time data and analytics insights

Our Process for Working Capital Optimization

Each project’s duration depends on its scope and requirements, so timelines are defined individually during the initial planning phase. A successful working capital optimization begins with clear analysis and follows a structured process that turns insights into measurable improvements, ensuring liquidity gains become visible in the short term.

Week 0 to 1:

We review receivables, payables, and inventory levels, evaluate existing processes, and identify initial opportunities to reduce capital tie-up.

Week 1 to 2:

Together, we define the key levers for improvement, develop performance metrics, and design targeted steps to unlock cash.

Week 2 to 3:

We introduce processes, tools and workflows that enable effective day-to-day working capital management and make results tangible.

Week 3 to 4:

We measure progress, analyze the impact on liquidity and process efficiency, and ensure sustainable results through clear ownership and accountability.

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Ways to improve working capital efficiently

If too much capital is tied up or processes aren’t running efficiently, it’s time to review your net working capital. A targeted approach to optimizing your working capital releases liquidity, enhances cash flow, and builds flexibility into your financial structure.

Together, we identify options to increase efficiency, streamline payment cycles, and ensure future cash stability. Our approach helps you optimize every aspect of your working capital improving both operational performance and long-term cash positions.

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Digital Tools to improve working capital management

Modern working capital management depends on transparency, automation, and real-time data. By leveraging cutting-edge technology, Radial connects systems, processes, and metrics into a single source of truth turning data and analytics into actionable insights for better business decisions and liquidity.

Our Technical Implementation Includes:

Power BI and Excel dashboards to monitor payables, receivables, and working capital
Secure integration with ERP and accounting systems for centralized data collection
Automated reports with key figures on liquidity, capital tie-up, and efficiency improvement
Tools for operational reporting to simplify data analysis and guide targeted actions
Templates for simulations and scenario analyses that streamline decision-making and enhance efficiency

This creates a system that goes beyond numbers improving operational control and treating liquidity as a strategic resource.

Key Measures to optimize working capital

Working capital optimization focuses on three core areas that together strengthen a company’s liquidity and operational effectiveness in a lasting way.

Improve Receivables Management

Optimize payment terms and dunning processes to shorten collection periods
Leverage factoring to secure liquidity and reduce payment risks
Establish clear processes within accounts receivable to minimize defaults
Continuously monitor trade receivables to ensure predictable cash flow

Optimize Inventory Management

Reduce excess stock levels and improve the planning of consumables and operating materials
Analyze inventory and capital tie-up to minimize funds bound in stock
Introduce digital tools to manage inventory financing and turnover rates
Regularly review inventory levels to lower storage costs and free up capital

Structure Payables Management

Improve trade payables through proactive supplier and payables management
Utilize optimal payment terms and cash discounts to reduce costs and improve cash flow
Prioritize short-term liabilities and align with suppliers to maintain stable relationships
Build a transparent system for short-term obligations to strengthen liquidity and control

Why Radial?

Big Four level rigor with boutique speed and attention
Ex Big 4 leadership, bilingual team, and PE native ways of working
CFOs, controllers, and treasury teams aiming for best practice
Germany and the United States with bilingual delivery

How Well Are You Using Your Working Capital?

Many companies know that hidden potential lies within their payables, receivables, and inventories. With the right working capital optimization, processes can be streamlined, liquidity unlocked, and financial flexibility increased.

We’ll show you how to effectively manage your working assets step by step keeping more cash in the business and securing your organization’s agility and financial strength for the long term.

Get in touch with us today and tell us what you need.

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Frequently Asked Questions

How is this different from a traditional analysis?

We go beyond a one-time assessment. Our approach ensures that new routines, dashboards, and management practices are permanently integrated into daily operations keeping optimization results visible over the long term.

Will I see quick results?

Yes. Within just a few weeks, you can identify and realize the first liquidity improvements. At the same time, we work together to establish lasting financial impact.

Do I need to implement new software?

No. We work with your existing systems. When appropriate, we provide recommendations or assist with enhancements.

Do you handle training and handover?

Absolutely. We support your team with training, templates, and structured processes to ensure sustainable success.

How are the results maintained over time?

We embed accountability, goals, and monitoring into your team’s daily routines making liquidity optimization a consistent part of financial steering.

How is data security and privacy ensured?

We apply the latest encryption and security standards for both data transmission and storage. All models, reports, and financial data are processed exclusively within secure environments, with clearly defined access rights and full logging.

What our customers say

Radial has helped us make great strides in our efforts to digitize financial reporting and increase transparency. I look forward to the next steps, in which we will once again be relying on Radial for support.

Thorsten Preiss, DETAX GmbH

Stability Starts with Efficient Capital & Cash Flow

Successfully optimizing your working capital creates room for growth and builds a foundation for long-term resilience. When processes, cash flows, and resources align, true efficiency emerges visible in daily operations and tangible in liquidity.

Reduce capital tie-up, secure planning flexibility, and achieve lasting improvement in liquidity. We help you build a system that doesn’t just manage value – it moves it.

Schedule a free initial consultation