As the weather cools and companies shift gears into the final quarter of the year, credit and collection professionals face more than just seasonal changes. This fall, the business climate is shaped by a combination of policy shifts, economic headwinds, and new regulatory priorities that could have a direct impact on accounts receivable management. For those who depend on steady cash flow to fuel growth, the coming months will require more vigilance than ever.
One of the most pressing factors is the ripple effect of tariffs and trade policies. After several years of uncertainty, companies are once again facing cost pressures from tariffs and retaliatory duties, particularly in industries such as manufacturing, construction, and consumer goods. Customers who find themselves squeezed by higher input costs may look to delay payments, extend terms, or even justify short-pays. While these tactics may seem like short-term fixes to them, they can quickly become long-term risks for credit managers tasked with protecting margins.
Another shift is coming from financial policy itself. Central banks have signaled that interest rate adjustments may stabilize but not fall as quickly as many businesses hoped. For leveraged companies, higher borrowing costs mean tighter liquidity, which translates into more pressure on working capital. From a credit perspective, this means that even long-term “safe” customers may become riskier, not because of mismanagement but because of financial strain that trickles down from the macro level. Monitoring changes in customer financing arrangements will be key to spotting early warning signs.
At the same time, regulatory oversight of corporate governance and financial disclosures is tightening. Recent policy signals suggest that companies in sectors like energy, technology, and logistics could see expanded reporting requirements. For credit and collection teams, this has a silver lining: more transparency. Credit professionals who stay tuned to these developments will have more data at their disposal to evaluate customer health. But it also requires the discipline to analyze that information quickly and adjust credit limits or payment terms in real time.
Internally, policy shifts within organizations may prove just as disruptive as government-level changes. As companies scramble to meet year-end sales targets, many will pressure their credit departments to approve larger orders or bend standard procedures “just this once.” These exceptions, often framed as strategic opportunities, can quietly erode the integrity of a credit policy. With Q4 urgency, the challenge for credit professionals is to balance the need for flexibility with the duty to safeguard the company’s receivables.
Looking ahead, the best defense is preparation. This fall, credit and collection teams should reassess their portfolios, update stress tests, and strengthen communication with both customers and internal stakeholders. Make sure sales teams understand the credit department’s perspective, and work collaboratively to set realistic terms that reflect both market realities and risk tolerance. While the winds of policy change may be unpredictable, strong practices and disciplined oversight can keep your company’s cash flow steady through the storm.
Your thoughts and comments (nseiverd@cmiweb.com) are most welcome!
Nancy Seiverd, President
CMI Credit Mediators, Inc.
All Rights Reserved
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