There is a trade credit crisis. At any time, American small businesses are losing immediate access to an estimated $900 billion in liquid capital, through their own practice of offering trade credit to their B2B customers --- in the form of net terms (payable net 30, net 60, or longer). Waiting to get paid no longer has to be a cost of doing "business as usual".
In this episode, we discuss the latest independent research on how to solve the payment delay crisis brought on by this Net Terms Economy.
A new study from Frost & Sullivan, a growth, strategy consulting, and research firm, shows just how much money’s involved and what can be done about it.
The Frost & Sullivan research shows that by receiving payments when their work is complete — instead of having to wait — B2B sellers can enjoy:
The report goes on to suggest that small businesses can achieve these benefits of immediate payments by using what they call Next Generation Credit and payment solutions.
See also our related Fundbox blog article: New Research Shows How to Stop B2B Trade Credit from Stunting Small Business Growth.