Saturday, May 12, 2012

For Small Firms, the Check is Not in the Mail - WSJ.com

For Small Firms, the Check is Not in the Mail - WSJ.com: "One of the potential downsides of being a supplier or a vendor to a big company is that you may have to wait a while to get paid.

‪On average, big businesses – those with 1,000 or more employees – paid their bills more than a week past the due date on invoices, according to a report that's expected to be released by Experian next week."

These big businesses appear to be taking even longer than they did last year to cut checks, and thus, settle their accounts with suppliers: The wait beyond contracted terms – that is, the date agreed to at the time of a sale – grew by 27% over the past year, from six days to nearly eight days, according to Experian.
‪‪This trend is particularly disturbing for many small business owners and start-up founders, because they tend to be highly dependent on regular cash flows for working capital to pay their own suppliers and vendors, along with their employees.

'via Blog this'

No comments:

Post a Comment

Featured Post

Dawgen Global Firm Profile

Dawgen Global is an integrated multidisciplinary professional service firm We are integrated as one firm and provide several profession...