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by kenneth
2838 days ago
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You can get credit specifically to solve for that issue, usually at reasonable rates. Short-term small business loan facilities exist. Another decent option if you're reasonably sure you'll receive payment NET30 are credit cards + an online bill-pay service like Plastiq. |
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I personally have helped out a few businesses with a 2% CB CC (which helps offset the Plastiq fees) that offers a 6-mo 0% APR term but the CL is the limit of the loan which limits the extent of the loan.
Most CCs don't have such gracious terms in which case you could be paying a hefty fee to gain that cashflow.
Having done this a few times, my conclusion is that this is a very bad practise and exposes a business with cashflow issues if this is a regular occurence.
A healthy AR is better than no AR but you know what's even better?
A healthy cashflow.