Many companies are left with supplier debts, it is important to quickly find a solution to repay these debts and rebalance the accounts of the company. Learn more at lorrytrans.com
Supplier debt: principle and solutions
Supplier debt corresponds to one or more invoices received by the company from one or more suppliers. When these invoices are unpaid, they are designated as supplier debts. It is quite simply the gap which is noted between the purchase and the disbursement of the funds associated with it. The longer the payment period, the more the treasury will be optimal for the company, but suppliers must be paid in due time to avoid deterioration of the relationship. Note that the payment period is capped at 45 days.
It sometimes happens that a company is forced to face cash flow problems, which can impact supplier regulations and therefore lead to a tense relationship. It is important to quickly find solutions to restore the regulations on time and to maintain a good relationship with its suppliers, several solutions are to be considered such as professional loan.
Cash credit and supplier debt
Cash management is a key success factor for a business, it is important to maintain a positive professional bank account while having the capacity to settle all debts, including supplier debts, on time. Deadline negotiations can be started with suppliers, some of whom have become partners over the years, but it is important to find a solution to the treasury problem. Professional credit can be a solution to put the company’s financial situation in order.
In addition, it is important to specify that a bank overdraft is assimilated to a credit, but the cost can be more important for the company rather than to request a bank loan. Credit institutions precisely offer professional financing to allow the company to restore cash and honor its debts with its suppliers. It is obviously necessary to file a request and justify with certain documents (balance sheets) the financial situation of the company, this will quickly obtain a feasibility opinion.
Support you in financing your debts
The use of professional credit is one solution among many others but it is important to be accompanied by a brokerage firm with all the solutions in hand to allow society to find balance. Whether through supplier debts, through late payments or to fill a cash flow need, We are at your side to offer you tailor-made solutions, meeting your current needs and allowing you to rebalance the accounts. of your company. A first point can be made on the financial situation of the company, this allowing to better present the possible solutions and in particular the steps to be accomplished.