When businesses face financial pressure, they may be tempted to supply products to customers with poor payment histories to quickly clear inventory and generate cash flow; however, this short-term gain carries significant long-term risks including potential non-payment, damaged cash flow, and compromised business sustainability.
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Risky Business: Supplying Bad Debtors for Quick Cash #shortsAdded:
You supply people and they don't pay you.
Ah, okay. So, you were going down that road. Going down that road. Okay. You start doing deals of or trying to supply stock to a customer that you know is a risky that they are bad payer, but you just want to Clear turn the stock, yeah.
>> Turn the stock. Yeah.
>> Cuz the faster you can turn the stock, the faster you can pay your supplier, the faster you can pull more stock.
Yeah. Yeah, yeah.
Yeah.
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