Suppliers Factoring Company
Many suppliers offer a 2% discount to their customers who pay in ten days or less. It seems like a logical solution to your working capital issues. While this might work with some of your customers, it will not work with the majority. Your customers in most scenarios suffer from positive working capital as well, so they need longer net terms to pay you. Many of your customers will simply snuff off the 2% savings and pay you at a later date as their cash flow doesn't allow for them to benefit from this savings. You are in business to make money, you can’t very well over a larger discount than this, it really eats into your profit margin, which is why many suppliers turn to invoice factoring companies for their working capital solution.