2 min read
Why supplier timing matters
Paying suppliers late risks supply, goodwill and sometimes prompt-payment discounts worth more than the cost of bridging. The gap between paying suppliers and being paid is the essence of the working-capital cycle.
How to bridge it
A short facility covers the supplier payment and is repaid as your customers pay. Weigh any early-payment discount the supplier offers against the finance cost — it can more than pay for itself. Use the early payment discount calculator.
What it means for you
Keep suppliers paid and supply flowing.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
Is it worth borrowing to pay a supplier early?
Often, if the supplier offers a prompt-payment discount that exceeds the cost of finance, or if paying on time protects supply and goodwill. Compare the discount against the finance cost.
How do I avoid these gaps?
Tighten your own collection so customers pay faster, negotiate fair supplier terms, and keep a buffer. Short-term finance handles the gaps that remain.
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