Offering a customer trade credit creates a cash flow mismatch because you’re not collecting on an invoice right away. You can minimize cash flow difficulties while allowing customers to pay on credit by:
- Evaluating the creditworthiness of clients and offering trade credit only to clients with the capacity to pay
- Using a global network of lenders to customize credit terms
- Imposing credit limits for each client
- Digitizing invoice processing and payment monitoring to accelerate collection
A comprehensive solution is to introduce automation. End-to-end AR platforms like Apruve use intelligent automation to reduce inefficiencies in the system, provide next-day payment, and improve cash flow predictability. Automated trade credit management provides effective financing options without risking a cash crunch.