Trade finance product enables credit managers to effectively manage DSO, credit risk and cash flow.(Selected Topic)(Days Sales Outstanding )

Business Credit, June, 2004 by Mahtani, Uday

There is now an innovative financial solution that improves the working capital and cash flow impact of the accounts payable market. Trade Payables enables credit managers to take control of their accounts receivable turning them into a more efficient source of working capital. Trade Payables financing programs enable both the supplier and their buyer to meet their unique business challenges and achieve their optimum goals--buyers receive extended payment terms on an unsecured basis and suppliers accelerate their cash flow and mitigate credit risk.

A Trade Payables program is an easily assimilated, inexpensive and customizable solution that augments, but does not replace, existing accounts receivables programs. Its ease of use and quick turnaround make it...