Your business can benefit from extending trade credit without running into cash flow difficulties by accelerating your procure-to-pay process, which is achieved through A/R automation.
Your business can benefit from extending trade credit without running into cash flow difficulties by accelerating your procure-to-pay process, which is achieved through A/R automation.
Trade credit is an arrangement between businesses that delays payment for delivered goods and services. Credit terms vary, but payment terms are typically due in 30 to 45 days.
Merchants often use trade credit to:
However, trade credit often constrains cash flow because customers don’t pay upfront.
Offering trade credit to B2B customers has historically created a cash flow mismatch because merchants were not able to collect on an invoice right away. You can minimize cash flow difficulties while allowing customers to pay on credit by:
A comprehensive solution is to introduce automation, especially with built-in financing. End-to-end AR platforms like Apruve use intelligent automation to reduce inefficiencies by automating receivables and providing next-day payments on open invoices, which ultimately improves cash flow predictability. Automated trade credit management provides effective financing options for your B2B buyers without merchants risking a cash crunch.
Talk to our specialists to learn how Apruve can reduce fixed credit & A/R costs and team effort by over 50%.
