Where Treasury Meets Credit: Accelerating Cash Flow and Redefining Risk

Jennifer Skeggs, Assistant Director of Credit, Carter Lumber

Jennifer Skeggs, Assistant Director of Credit, Carter Lumber

For decades, Credit Management has primarily focused on risk mitigation— often operating within functional silos and guided by conservative decision-making frameworks. While this traditional approach has provided safeguards against financial exposure, today’s fast-paced, cash-sensitive business environment calls for a more dynamic and insight-driven strategy. As Accounts Receivable (A/R) becomes increasingly central to working capital optimization and growth enablement, Treasury professionals play an increasingly pivotal role in reshaping the credit function. With their deep expertise in liquidity management, risk-adjusted analysis and capital structure awareness, Treasury brings a highly strategic lens that aligns credit decisions with broader financial goals—ultimately transforming A/R into a proactive driver of business performance and competitive advantage.

This shift fundamentally redefines the role of Credit from being merely a risk gatekeeper to becoming a strategic enabler that thrives through cross-functional collaboration across the organization. Traditionally, Credit has been viewed primarily as a control function focused on limiting exposure and minimizing risk. However, Credit is now positioned to support profitable growth by working closely with key stakeholders such as Sales, Treasury and Finance. This evolution reflects a broader business imperative: moving from siloed, risk-averse decision-making to integrated strategies that balance opportunity with financial discipline. Treasury plays a key role in this transformation by bridging the gap between liquidity planning and frontline customer engagement. With comprehensive visibility into enterprise-wide cash flow, funding needs and prevailing market conditions, Treasury adds invaluable context to credit decisions beyond individual transactions.

“Credit is no longer just about minimizing risk. When aligned with the Treasury, it becomes a strategic lever that enhances cash flow, informs more intelligent decisions and drives growth through integrated planning, financial insight and cross-functional collaboration”

When Treasury, Credit and Sales operate in concert, businesses gain a more unified and agile approach that aligns customer terms, risk tolerance and revenue goals to accelerate cash flow and drive sustainable growth. As the role of Credit continues to evolve, Treasury’s involvement offers a decisive competitive advantage— bringing enhanced financial insight, liquidity awareness and capital market context into credit strategy. This close collaboration enhances risk evaluation, strengthens cash flow performance and supports revenue growth. For instance, the Treasury can assist in structuring payment terms that align with funding cycles, identify customers whose payment behaviors present hidden or emerging risks, or forecast the cash impact of large credit extensions before approval.

The integration of Treasury and Credit functions enables more intelligent, faster decisions—grounded firmly in data and aligned with broader financial objectives. It shifts the conversation from the traditional “Can we extend credit?” question to a more strategic inquiry: “How does this decision support our overall working capital and growth strategy?”

In today’s complex and rapidly evolving environment, where speed, visibility and cash flow are more critical than ever, the cross-functional strategy between Treasury and Credit isn’t just beneficial—it’s essential.

By working together, these functions move from reactive to proactive, ensuring businesses are protected from risk and positioned to thrive in a competitive marketplace.