CFOs Risk Losing Control of Working Capital One Sales Contract at a Time

Your sales team might be hurting your cash flow without realizing it. Many businesses are currently using longer payment terms as a way to close deals. While this helps sales numbers, it creates a massive gap in working capital. This article highlights a growing disconnect between sales contracts and financial stability. When sales reps offer 60 or 90-day terms to stay competitive, they are essentially acting as a lender for the customer. This ties up cash that you need for inventory, payroll, and growth. For retailers and service providers, the cost of 'carrying' these customers is rising. You aren't just selling a product; you are financing it. If your finance team isn't involved in the contract stage, you risk losing control of your liquidity. The fix requires moving away from manual spreadsheets. You need real-time data to see how much each 'easy' payment term actually costs your bottom line. Automation can help bridge the gap between your sales goals and your bank account balance. Don't let a closed deal become a cash flow crisis.

Source: PYMNTS

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