Extended payment terms and Impact on your business

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Before 2009, a Company/Buyer asking for extended payment terms was a clear sign that the company is not doing well financially. Not any more

If your company is getting on the bandwagon of Net 90 or Net 120 payment terms, you are not alone.

As per an article on NewYork times, it is a growing trend and some suppliers are feeling the brunt of extended payment terms in the form of increased cost of capital.

 

No doubt that pushing the payment terms will help generate free cash flow which companies are using in different ways. For example, Mondelez is buying back stocks and Kellogg is in the middle of a restructuring.

Before you decide to go further on extending payment terms

​You can read the article at the following link


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