Put Your Tariff Refund to Work Before Q4

More of our merchants are seeing tariff refunds land this summer, and some of those deposits are large enough to change the financial shape of a quarter. 

If you were the Importer of Record on any goods that came into the U.S. between the spring of 2025 and February of this year, there is a reasonable chance you are owed money or have already been paid.

Here’s what to do with your refund once the wire clears. 

Where Are the Refunds Coming From?

In February, the Supreme Court ruled that certain Emergency Economic Powers Act (IEEPA) tariffs were not authorized, leading to refunds for many retailers and commerce brands. 

Customs has been processing these refunds since April, gradually working through different categories of goods. Note that not all import costs have disappeared, as some duties on items like metals and cars remain in place, and other fees are still active. It’s best to check with your customs broker to see if you are eligible for any refunds and if you need to file any paperwork.

A handful of merchants got there early. According to Retail Dive, over the spring, a secondary market appeared that let importers sell forward part of an expected refund and take cash in days rather than months. Those operators have had the money working for a while now.

3 Reasons Your Tariff Refund Isn't a Q4 Capital Strategy

The tariff refund can put meaningful cash back on your balance sheet at exactly the right moment. But Q4 has a way of making “extra cash” disappear quickly: Inventory deposits. Freight. A campaign that suddenly starts working. A hero SKU selling faster than anyone forecasted.

The ecommerce operators who’ll get the most from their refund won’t treat it as a replacement for their capital strategy. Instead, they’ll use it to create more room inside one. 

Here are three reasons why your tariff refund sounds like a great idea today, but won’t enable you to keep investing in Q4 opportunities. 

1. The Refund Comes Once. Growth Doesn’t.

A tariff refund gives you back cash you already spent. However, once you put that money to work, it’s gone. When that moment comes, you still need to keep your inventory cycle moving, your suppliers paid, and your ads running. And when something starts working better than expected, those needs can get bigger fast.

Imagine a hero SKU starts selling three times faster than forecast. The first reorder might fit inside your refund, but then demand keeps climbing. Suddenly, you need another production run—fast. This means paying for more freight and more ad spend behind the product while momentum is on your side.

That’s why recurring growth needs are different from one-time cash events.

Clearco’s Rolling Funding Capacity, for example, is designed for recurring inventory, marketing, and supplier needs just like this. As payments are made, available funding capacity replenishes.

As Oh Snap expanded from three SKUs of their mobile accessories at Target to 24 SKUs across all 2,000 stores—all while keeping up with DTC orders—Clearco’s Rolling Funding Capacity helped finance supplier payments, inventory, and raw materials. The added flexibility helped Oh Snap keep up with demand, launch new products, and continue expanding without forcing every opportunity to compete for the same pool of cash.

2. Timing Is the Real Constraint

Right now, in August, your Q4 clock is already running. Inventory has to be ordered before customers want it. Production slots have to be secured before Black Friday and Cyber Monday. Creative needs time to prove itself before you decide which campaigns deserve more money. 

Suddenly the question isn’t whether you had enough cash in August. It’s whether you can still move in November.

Because waiting until October to discover you needed more inventory in November is not a cash problem anymore. It’s a timing problem.

That’s why the best use of the refund isn't simply paying for everything you can with it. Instead, leverage that cash where it creates the most breathing room, while keeping additional capital available for the opportunities you can’t forecast yet.

3. Don’t Make The Refund Your Whole Capital Stack

The strongest capital strategy gives every dollar a job. Your tariff refund can be one source. Clearco can be another.

For example, you could preserve your refund for marketing, freight, payroll, or unexpected Q4 opportunities, while using Clearco’s Invoice Funding for eligible supplier payments. Or you could use our Cash Advance for broader business priorities and keep the refund available as a cushion.

The point isn’t to save the refund. It’s to avoid asking one finite pool of cash to do every job in the business. Remember: the tariff refund can fund the opportunity in front of you. The right capital strategy (and partner) helps you keep moving when the next one appears.

Prioritize Optionality Going into Q4

Tariff refunds are good news and for a lot of merchants they’re a positive surprise. What happens next is a question about how ambitious you want Q4 to be. 

Sitting on the money is a defensible way to finish the year roughly where you started it. Whereas, ecommerce brands who put their refund to work, and who bring in additional capital alongside it, are the ones who will see growth accelerate when a product starts running in November.

If your refund has landed, or you can see it coming, talk to us about what your funding capacity could look like with that cash on your balance sheet.

FAQ

1. How do I know whether my business is owed a tariff refund?

Refunds are going to Importers of Record who paid IEEPA duties on entries between early 2025 and February 2026. If your supplier acted as the importer of record, the refund may sit with them rather than with you. Your customs broker can confirm your entry history and filing status.

2. How should I account for a tariff refund?

A tariff refund is a correction to the cost of inventory you already purchased, so the treatment depends on whether those goods have sold. Your accountant or bookkeeping partner should walk you through it before you close the month.

3. Should I use my tariff refund instead of taking funding?

Refund cash and funding capacity solve different problems. The refund is a fixed amount that arrived once, while funding capacity can be drawn against as opportunities come up during the quarter. Using both gives you more buying power heading into your busiest season than choosing one.

4. How much of the refund should I hold as a cash buffer?

Enough to absorb a bad month without dipping into money set aside for growth (typically inventory or marketing). The exact number depends on your fixed costs and how much your revenue swings month to month.

5. Can a tariff refund affect how much funding I qualify for?

Funding offers are based on business performance, and a stronger cash position is part of that picture. Merchants who have received refunds may find they qualify for a larger advance than they did earlier in the year.