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For large companies paying as late as possible is part of their cash flow management. Why pay if it does not cost you? its like a free 30 day loan. So if the te
by jerven 13y ago
For large companies paying as late as possible is part of their cash flow management. Why pay if it does not cost you? its like a free 30 day loan. So if the terms say 30 days to pay on day 34. If your company is large enough you, just the carry trade on income you have and expenses you have not paid yet can make a difference on your balance sheet.
If some one is kind enough to extend it to 60 days without complaining, then its more free money for the customer.