Slow Accounts Payable in Large Corporations Hurt Small Businesses

So many times you hear of small businesses working their rears off in order to satisfy large corporate clients only to find them selves buried in bills due to those large corporations slow payments. Unfortunately this is a typical strategy to hoard cash. After all the slower they payout the more money they have in cash flow. It is not uncommon during downturns in the economy for large companies to have outstanding invoices in excess of 120 days.

This is devastating for the small businessperson who is not anticipating on such slow payments, but stringing out the payables now a days it seems is something all corporations do. It is almost as bad as Sears in the 70s and 80s. If you sell to large retailers you have to really watch your small business receivables as these corporate clients make you their own private vendor bank.

Now then let