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1. Assumes everyone sues. 2. Assumes everyone gets paid in full. 3. You can use the cash for other things. It is actually extremely common to pay suppliers la
by MattGaiser 3y ago
1. Assumes everyone sues.
2. Assumes everyone gets paid in full.
3. You can use the cash for other things. It is actually extremely common to pay suppliers late. My family used to be in the food production business and grocers routinely just didn't pay or changed payment terms until you hassled them sufficiently, as then they could have more cash on hand for other things, collect interest, etc. https://archive.is/0Rxap https://archive.is/0Rxap
So say that Twitter is having cashflow problems. You can just kick the can down the road by not paying bills and plenty of suppliers will take it, thinking they have no choice. By doing this, they can borrow for free.
Another good article on this: https://www.wsj.com/articles/delaying-payments-to-suppliers-help-companies-unlock-cash-1530178201 https://www.wsj.com/articles/delaying-payments-to-suppliers-...