financing option exercise

Option Financing Can assist Offset Money Flow Challenges Presented By Slow-Paying Buyers

The statistics may say that the U.S. economy is out of recession, but lots of tiny and mid-sized business enterprise owners will let you know that they’re not seeing a particularly robust recovery, no less than not yet.

You’ll find various causes for the slow pace of recovery among little businesses, but one particular is becoming increasingly apparent: A lack of money flow attributable to longer payment terms instituted by their vendors. Dealing with slow-paying consumers is practically nothing new for many tiny firms, but the issue is exacerbated in today’s sluggish economy and tight credit atmosphere.

That is ironically offered the fact that several large businesses have accumulated big money reserves over the previous couple of years by growing their efficiencies and lowering their fees. Several high-profile large corporations have announced lately that they are extending their payment terms to so long as four months, which includes Dell Pc, …