Negotiating enhanced supplier credit limits can maximise cashflow and reduce the likelihood of business failure, says Nick Hood
Many businesses are facing liquidity problems in these difficult economic times, but one thing neither they nor their professional advisers can afford to ignore is how the company’s financial health is viewed by the credit managers at key suppliers.
Unnecessarily low credit limits absorb scarce cash resources, while a sudden cut in a credit limit can interrupt supplies; in extreme cases it can bring down a business.
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