Episode 6 - Accounts Payable Financing - what to do when you're past due?

Jim's DoughfortheDream Podcast

Sometimes the time you need financing most, you might not get it. If you owe a vendor or supplier, especially one you want to continue doing business with, what do you do if you get behind? Should you try to get financing, pay the supplier or just walk? Well, if you want to do business again with that supplier, you'd better pay or work it out. Certainly your business credit score, the D&B, is important and you need to concentrate on how payable affect that. OK, so you're a little behind. Your suppliers are yelling, but you still need suppliers. You apply at the bank and you don't have success. What now? Accounts Payable financing is available. Often for a fee upfront, specialized firms can provide 100% financing for your payables due to your creditor - or they can step in and negotiate with your suppliers for a reduction in the payables due. Suppliers would prefer to be paid in full, certainly but they'd also prefer a partial payment rather than no payment - especially if you are going to continue doing business together. If you get behind, there are solutions. In this economy, suppliers are more flexible and they would rather keep the business moving rather than shut it off. Jim Frey - [e-mail]