From tariffs to economic turmoil, finance executives like me are increasingly aware of the macroeconomic pressures their companies face. Global trade and inflation challenges, fluctuating energy prices, and geopolitical tensions are casting a ripple effect on everything from supply chains to financial systems. In fact, the term “poly crisis” is increasingly used to describe the realities that companies must meet head-on – multiple crises compounding the force of impact.
Trade barriers and tariffs are top of mind today, particularly in transportation, manufacturing, equipment and materials industries, as well as healthcare companies and retailers on the receiving end of critical goods. Increased import/export costs set in motion a wave of volatility in demand. As purchasing patterns shift and operational footprints go under the microscope, a domino effect is dropped on shipping lanes, trucking routes, and air freight.
Suddenly, “unpredictable” becomes the word of the day at the board meeting.
I’ll be the first to admit that these macro challenges can feel like larger-than-life problems to fix. But the truth is, CFOs are empowered to navigate the current economy with confidence.
Financial risk management strategies offer strong tactics for counteracting macro-level trends. In this article, we unpack some of the top approaches CFOs use, exposing how financial liquidity serves as one of the best means to remain resilient and the critical role accounts receivables (AR) play in achieving and protecting it.
Let’s take a look.
Counteracting Tariffs and Turmoil with Financial Liquidity
The ease and pace with which an invoice can be converted into cash is important during tumultuous times, because companies may be confronted with unexpected, immediate expenses but also unforeseen opportunities – acquiring distressed assets for example or producing a marketing campaign to gain market share after a competitor folds.
Liquid assets can also assist with debt management, including meeting obligations, avoiding defaults and maintaining credit ratings when access to credit might be restricted. Stakeholder confidence is another benefit, ensuring continued support and stability from investors and creditors.
Liquidity is operational flexibility that acts as a buffer against various risks, including supply chain disruptions, currency fluctuations, and sudden changes in demand. With it, companies can be comfortable with the unexpected because they are better at adapting to unknowns.
Leveraging AR Operations to Reduce Economic Vulnerabilities
When companies anticipate turmoil and increased tariffs, they often adopt several techniques to maintain stability and reduce risk. The most obvious of which is diversifying supply chains and product markets, shifting production and sourcing to countries with lower tariffs or more stable economic conditions. Vietnam is a hotbed for investment, and while data shows 30% of manufacturers are exploring pulling out of China, the full impact is yet to be seen as many tariff policies remain in limbo.
However, other indisputable strategies put CFOs and their AR teams at the center of risk mitigation.
Cost Management: Adjustments in Pricing and Financial Policies
CFOs often advocate for adjusting pricing strategies to offset the increased costs due to tariffs and inflation. Cost-cutting measures, such as reducing operational expenses, renegotiating contracts with price escalation clauses, and rethinking policies can help companies maintain profitability during downturns.
In leading these efforts, CFOs and AR leaders should consider:
- The financial impact of credit card processing or interchange fees. Strategies like processing credit card payments with more detailed purchase information can be used to reduce your fees, and AR platforms like Billtrust’s include automation rules, making it easy to pass fees only to low-value clients or specific groups without overburdening AR teams.
- How long it takes credit card companies to post payments and the payment habits of your buyers. Payment release practices and fund hold times vary widely across major credit card brands. Thus, narrowing acceptable payment methods can reduce collection periods and accelerate cash flow for those with large credit card modalities.
- Protecting liquidity through policy. The same way hedging can protect against fluctuations, payment policies can aid in mitigating instability. Start by taking a closer look at your Days to Pay and Days Sales Outstanding metrics alongside your policies. Some companies need to fortify their policies with more stringent payments due dates and requirements for deposits or partial payment up front. Late payment fees can also charge interest on overdue invoices. Meanwhile reserving early payment discounts for only the most elite clients may also ensure cash availability for tariff-response projects like adjusting product design to use alternative materials.
Investing in Technology: Agentic AI can Make You Lean and Mean
Automation and advanced technologies can improve efficiency and reduce reliance on human labor, which can be beneficial during times of uncertainty. For AR leaders, this may include leveraging advanced AI analytics for better visibility and control over the order-to-cash process, leveraging Generative AI (GenAI) models to easily gain insights into payment trends and cashflow forecasts, or tapping into emerging technology like Agentic AI agents to build an AR operation where virtual assistants run autonomously.
Gartner labels Agentic AI “emerging technology” and the “next big thing.” Meanwhile, Forbes calls 2025 the “tipping point” for Agentic AI. That’s because it’s considered the next evolution of GenAI. Agentic agents are essentially GenAI virtual assistants that can act independently to achieve specific goals.
For AR professionals flooded with tasks and inquiries for everything from invoices to overdue payment reminders, a digital sidekick can be a big relief. While reaching the milestone of complete autonomy requires time and training, early adopters will undoubtably arrive first – generating the fastest competitive advantage. Ask your AR platform provider about their Agentic AI roadmap.
Building Corporate Resilience through Partnerships
Strengthening relationships with key suppliers and customers is also a key strategy for maintaining healthy cash reserves to weather any challenges. Whether it’s developing strategic partnerships, negotiating contracts to secure better terms, or simply deepening engagement, turn to your community and make the AR experience a top priority.
In looking at the average buying cycle, paying an invoice is often the customer’s last interaction with your company before they decide to buy from you again. This means the AR process can be the difference between leaving customers with a positive or negative brand impression.
AR teams should consider mapping their buyer journey to improve the quality of the transactional experience and maintain relationships to facilitate timely payments from clients. Common areas of improvement include:
More personalized approaches with reminders and email – something Agentic AI agents can do autonomously on behalf of collectors, enabling scalability.
Strategically timed follow-ups and even proactive outreach that leverages your buyer data to deliver gentle nudges for occasionally slow payers or more urgent communications for repeat delinquency
Leveraging buyer insights to find opportunities -- extending larger lines of credit to high-value clients with strong habits of paying invoices early
A Final Note
At the end of the day, these liquidity protection strategies not only help in navigating economic challenges but also position companies for long-term financial stability. Staying resilient is all about keeping your solvency strong by fine-tuning financial and AR practices. When you need to be ready to handle the ups and downs or whatever comes your way, stay flexible with cash flow availability.
Want to talk to an AR expert to discuss how you can reduce financial risk with Billtrust? Contact us for a free consultation.