Though we are now nearly four years past the official end of the Great Recession, obtaining credit remains challenging for many small and mid-sized businesses. This is especially true for businesses that have experienced difficulties such as a drop in revenue, or those with inadequate capital structure to support their cash flow.
Many companies struggling with working capital and cash flow challenges are overlooking an ideal source of financing that’s right beneath their nose: supplier credit.
Supplier credit is the payment terms offered by vendors and suppliers to their customers. For example, instead of requiring customers to pay upon delivery of products or services—or in other words, cash on demand (or COD)—a supplier might permit the customer to pay within 30 days. This is commonly known as net-30 payment terms.
Today's lending environment poses many challenges especially to small business loans owner. Just a few short years ago, many small business owners were flush with cash and revenues seemed to be steadily increasing. As a result of good cash flows, many business owners neglected their banking relationships and selected to self finance capital acquisitions in lieu of debt.
Though we are now nearly four years past the official end of the Great Recession, obtaining credit remains challenging for many small and mid-sized businesses. This is especially true for businesses that have experienced difficulties such as a drop in revenue, or those with inadequate capital structure to support their cash flow.
Many companies struggling with working capital and cash flow challenges are overlooking an ideal source of financing that’s right beneath their nose: supplier credit.
Today's lending environment poses many challenges especially to small business loans owner. Just a few short years ago, many small business owners were flush with cash and revenues seemed to be steadily increasing. As a result of good cash flows, many business owners neglected their banking relationships and selected to self finance capital acquisitions in lieu of debt.
