29 ms·
We did not. Amounts are insignificant for each individual supplier and negotiating, keeping track of, and be leveraged (delayed payment is just that - a bridge
by hippich 6y ago
We did not. Amounts are insignificant for each individual supplier and negotiating, keeping track of, and be leveraged (delayed payment is just that - a bridge loan offered by a supplier) seems like a burden for now. Despite higher risk tolerance being encouraged by the economy today, we are quite cautious about using any kind of leverage. We do have lines of credits, revolving accounts, etc for tough times, but prefer to avoid using significant leverage unless we absolutely have to.
- toasterlovin 6y agoFWIW, you don’t have to use payment terms as financial leverage. You can just use them as a way to give your balance sheet more capacity to absorb problems, should they arise. In my opinion, that’s a good thing. Also, your suppliers will be more committed to you and they’ll respect you more if they’re extending you terms. Anyway, if you want a playbook for negotiating terms, feel free to reach out via email (address is in my profile).
- hippich 6y agoThat's an interesting view of it, I did not consider it. It is essentially the way we are using credit cards - we are not increasing our leverage, but at the same time, we are building a credit history for the company. Just sent you an email about your offer :)