# CFOs Risk Losing Control of Working Capital

> Sales contracts can erase CFOs' cash control before revenue is booked.
- Title: CFOs Risk Losing Control of Working Capital · Pymnts
- Summary: Sales contracts can erase CFOs' cash control before revenue is booked. Extended payment terms in sales contracts cost companies millions in financing fees…
- Keywords: working capital, sales contracts, payment terms, cfo, treasury, finance, revenue recognition, financing costs, business, CFOs, Risk, Losing
- Source: Pymnts — https://pymnts.com/loans/working-capital/2026/cfos-risk-losing-control-of-working-capital-one-sales-contract-at-a-time
- Author: PYMNTS
- Published: 2026-10-08T23:27:34+00:00
- Read time: 1 min
- Topics: working capital, sales contracts, payment terms, cfo, treasury, finance, revenue recognition, financing costs, business
## The hidden working capital threat
The biggest threat to a company’s working capital strategy hides in sales contracts, not overdue invoices.
## Finance automation vs. sales terms
Finance can automate collections and accelerate reconciliation but extended payment terms negotiated by sales teams erase those gains.
## Payment terms cost millions
A 15-day increase in collection period for $500 million in annual credit sales ties up $20.5 million in cash, costing $1.6 million annually.
## Commercial decisions override finance
Extended payment terms can appear inexpensive to close deals but ultimately offload financing costs to treasury and CFO office.
## Two types of working capital pressure
Customers paying later than agreed is an execution problem while customers paying exactly when contracts permit is a commercial policy decision.
## WEX product manager explains
Ryan Taylor, SVP Product Management at WEX, says manual stitching of work and payments creates delays and errors as volume grows.

> The core problem is work happens in one place, and payments happen in another. People are stitching that together manually, which can create delays and errors as volume grows
## Strategic payment management
Companies should treat payment terms as strategic financial variables rather than standardized policies to avoid liquidity demands.
## Key takeaway

Extended payment terms in sales contracts cost companies millions in financing fees annually.