As a small business owner, you’re likely familiar with the challenges that 60-day payment terms can cause. While extended terms might help customers, they often place a significant burden on small businesses. Waiting two months for payment can create cash flow problems, making it hard to cover essential expenses like payroll and inventory.
According to Credit Connect, this issue is becoming more widespread. Since 2020, the number of companies offering 60-day terms has more than doubled, from 7% to 17%. For small business owners, this shift increases the risk of late payments and financial stress.
Waiting for payments can make it difficult to manage finances or invest in growth. Many small businesses are now owed large sums, which limits their ability to operate efficiently and maintain healthy cash flow.
If you’re feeling the pinch from extended payment terms, there are solutions. From tightening your credit checks to setting firmer terms with clients, you can take steps to protect your business from the financial strain. But you don’t have to navigate this alone.
As a fellow small business owner, I understand the challenges you face, and I’m here to help. Together, we can develop strategies to improve your cash flow, reduce risks, and ensure that your business remains strong.
Get in touch today to discuss how I can support you in managing these challenges and securing your business’s financial future.
For more information on the rise in 60-day payment terms, read the full article at Credit Connect.