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Management Pulse survey results: Customer credit and payment options

  • November 2017
  • Number of views: 391
  • Article rating: No rating

Jimmie Williams, Jr.
Bradleys', Inc.

Cash flow is the heartbeat of every successful service business. Balancing the ebb and flow between Accounts Payable and Accounts Receivable is a struggle, especially when the customers do not pay within the negotiated term. If a company’s credit requirements are too stringent, we may lose good customers. If too lenient, we are left holding an empty money bag. We’ve all been burned at least once by a publicly traded corporation due to their financial failure. Of the 188 respondents to the recent Management Pulse survey on customer credit applications, 85% extend credit terms to their customers.

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