Business Financing

Facing a severe cash crunch, ensuring payroll becomes a top priority for business owners. Immediate actions include offering discounts on outstanding receivables, organizing flash sales, engaging employees about the situation for potential solutions, and considering partnering with a factoring service to quickly secure cash against outstanding invoices.

Facing extended payment terms from a major customer can severely disrupt your cash flow, but it’s crucial to remember that you don’t have to accept their terms blindly. Instead, consider your leverage, communicate with the right people within the customer’s organization, know their payment history, and explore options like incentivizing early payments or utilizing invoice factoring to ensure a win-win situation for both parties.