Granted, it’ll be a while before your company feels any effects from President Obama’s new financial oversight plan. But here’s what’s in store for you when it passes.
There are still rounds of wrangling ahead to meet the admittedly ambitious goal of having a financial oversight plan passed by year-end.
Still, we’ve scoured the president’s 88-page whitepaper to uncover what will impact you most when a plan does pass.
Impact on cash flow
Yes, the org chart will look rather different in terms of which agencies oversee which parts of the U.S. banking and financial system.
And companies in the financial services industry should prepare to have their worlds rocked.
But if you’re in any other industry, the area of your business where you may feel the changes most acutely is accounts receivable and collections.
That’ll happen in three specific places:
1. Sounder credit checks. If the proposal passes, your company will be able to have more confidence in the data your finance staffers pull from credit ratings agencies. More scrutiny and greater disclosure will be required from agencies under Obama’s plan.
2. Improved collections from small biz customers. A major component of Obama’s plan is the creation of a regulator for credit cards. That’ll make it a more appealing payment option for small-biz customers, resulting in a potential cash flow boost for you.
3. Fewer mega bankruptcy surprises. The unpleasant shock of some enormous companies’ going belly-up was a major contributor to our recent economic woes. Expanded Fed power will attempt to supervise companies that are so big that if they fail, they could harm the economy. That could head off major losses for your firm (or your customers, which also impacts your cash flow).