Building a Cash-lean Company

Abstract

There is a general trend for larger companies to require longer supplier payment terms (even some supermarkets, which really don’t need the cash, are paying more slowly). Although the picture varies from country to country, there appears to be a general drift to paying at the end of the month rather than the agreed number of days from the invoice, and 30 days payment is increasingly being replaced by 60, 90 days or even longer. Wherever you look, country or industry, the trend is in the wrong direction. What started out as giving the customer enough time to process payments has ended up as the customer using suppliers as a source of funding.

If you’re going through hell, keep going.

Winston Churchill