In this episode of the R&B Show, Rieva, and Brian talk to Greg Powell from Fundbox about the “Net Terms” economy and why small business owners need to get paid on their outstanding invoices.
Five Key Takeaways from Greg Powell:
- Businesses need to be agile because the requirements for reopening are constantly evolving.
- If I get paid slowly, I’m more likely to pay my vendors slowly.
- Your business is compounding the problem by giving companies a discount just for paying on time.
- Even if a company only had to write off less than 1% of the trade credit that was issued to their buyers, you’re not accounting for all of the costs.
- We knew that we couldn’t just sit around, waiting for the federal government to create a big stimulus program. We had to act quickly.