A strategic approach to payment terms remains crucial to cash management, and today’s economic climate continues to exacerbate the impact of extended payment terms on businesses across industries. Regardless of whether you are actively dealing with — or even aware of — the issue, you can still protect your cash and capital from an increasing threat.

Payment window expectations have dramatically evolved in a short period of time.

Years ago, sellers more commonly offered early payment terms to customers for a discount. While we still see these payment requirements, extended payment requirements are by far the more common arrangement seen today and much more widely accepted than 50 years ago.

Today, businesses have normalized extended payment terms, often spanning from 60 to 90 days and wi

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