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How to Negotiate Favorable Credit Terms from Vendors

  Mark S. Becker, Partner, CFO Edge, LLC  
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  Article Summary  
When favorable credit terms have not been negotiated with vendors, negative impact can include poor cash flow, late delivery of critical raw materials, frustrated customers, and lower sales and revenue.

Hurdles to obtaining successful vendor credit terms include a lack of experience in negotiating, not knowing the depth and breadth of credit terms that are available to qualified customers, a lack of leverage that may be due to low cash on hand, or a credit history has not yet been established.

Positive outcomes occur when applying a holistic approach to credit terms: make them a negotiable item inside an overall supplier contract.

Los Angeles and Southern California executives looking at ways to get more favorable credit terms can benefit from talking with a provider of outsourced CFO services.

Professional resources of this nature bring deep expertise negotiating on both the customer side and the supplier side.

They also bring a proven track record of using different financing methodologies that can provide options for you and your suppliers to reach mutually beneficial agreements.

  Open as PDF Open the entire article as a downloadable PDF  
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