It’s no secret that businesses are facing unique challenges this year. Between economic uncertainty, political division, new and increasing tariffs and many more factors, businesses need to keep an eye on countless factors to protect their cash flow. And if they can’t keep all of those balls in their air? They could be looking at late or missed payments, worse terms in contracts, reputational damage or even an increased risk of bankruptcy.
Our latest report, Working Capital Dynamics, was written in partnership with BlackLine to explore payment trends in key industries over the last two years. With so much data to sift through, the result was eye-opening: an in-depth analysis of which industries are doing well, which have work to do and which are showing signs of struggle.
So, what are the takeaways? Let’s go through some key findings.
Table of Contents
- Heavy debt is the common thread when it comes to retail bankruptcies
- Retailers are front-loading inventory to avoid tariff hikes
- Agriculture, forestry and fishing companies lead the nation in on-time payments
- Construction firms are under persistent cash flow pressure
- The mining sector shows both risk and opportunity
Heavy debt is the common thread when it comes to retail bankruptcies
Companies like Red Lobster, Express, Toys R Us and Bed Bath & Beyond all entered bankruptcy in the last few years with more debt than cash flow could sustain. Claire’s, the most recent filing in August 2025, is a stark reminder of this. The company carried more than $1 billion in debt and less than $30 million in cash on hand, all while facing new tariffs of 30-36% on goods from Asia. Our data shows that Claire’s payment behaviors became increasingly erratic leading up to their bankruptcy filing, with Days Beyond Terms (DBT) tripling in a single month. The lesson is clear: debt-heavy retailers are highly vulnerable to tariffs shocks and shifting consumer demand.
Retailers are front-loading inventory to avoid tariff hikes
More than 60% of consumers have already adjusted or plan to adjust their spending habits in response to tariffs and inflation. For retailers, that means non-essential purchases – apparel, accessories and discretionary items – are the first to go. In response, many retailers have front-loaded inventory to avoid further tariff hikes.
But tying up significant cash in goods that may not move immediately is risky. Our data shows that nearly half of businesses increased their inventory buys, with a third increasing stockpiles by up to 25%. This strategy could backfire, straining liquidity and raising the risk of delayed supplier payments.
Agriculture, forestry and fishing companies lead the nation in on-time payments
Despite surging farm debt and weaker crop receipts, agriculture, forestry and fishing companies have led the nation in on-time payments. Their average DBT stayed close to 7 days across the past two years, even while tariffs disrupted equipment imports and farm bankruptcies rose 55% in 2024.
What’s remarkable is that delinquent payments in this sector actually fell to near-zero levels in May 2025. Credit risk scores also improved, with the share of businesses rated Very Low Risk nearly doubling in two years. That resilience, even amid cost and trade pressure, sets agriculture apart from other sectors.
Construction firms are under persistent cash flow pressure
Slow client payments are an infamous problem within the construction industry, which has a ripple effect on the amount of time it can take for companies to pay their own bills. In 2024, more than 60% of bills in the construction industry were 1-30 days past due.
This is a massive spike from previous years, linked to inflation-driven increases in labor, materials and financing costs. Unsurprisingly, over half of construction firms are rated by Creditsafe as a Moderate Risk, with fewer than 4% earning a Very Low Risk rating. This pattern underscores how structural payment delays from clients ripple through the industry, forcing firms to dip into profits to keep projects moving and stifling long-term growth potential.
The mining sector shows both risk and opportunity
When we looked into the mining sector, we saw a tale of two extremes. On the one hand, over 60% of mining firms are now rated Moderate Risk – nearly doubling over two years – which signals growing vulnerability. On the other hand, nearly one-third now hold strong credit ratings, with those in the very Low and Low Risk categories rising steadily. This split reflects the sector’s uneven footing: while revenues and EBITDA declined in 2024, record gold prices boosted margins for some firms. With growing investor interest in renewable energy supply chains, well-managed mining firms could secure better access to working capital, but weaker players may struggle to attract financing.
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About the Author
Ragini Bhalla, Head of Brand, Creditsafe
Ragini Bhalla serves as Head of Brand for Creditsafe. She brings our industry-leading data to the forefront of global conversations about credit risk, compliance and larger economic trends.
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