2 min read
Manage the immediate hit
Losing supplier credit brings forward a cash outflow you had been financing on terms. A short facility covers the up-front payments while you adjust, keeping supply flowing. It stretches your working-capital cycle, which finance is built to fund.
Address the cause
Suppliers usually tighten terms over payment concerns or their own cash needs. Paying reliably and communicating can rebuild credit terms over time. In the meantime, protect the relationship by paying on time, financed if needed.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Why would a supplier demand up-front payment?
Often because of concerns over your payment record, or their own cash-flow needs. Paying reliably and keeping communication open can restore credit terms over time.
How do I cover sudden up-front payments?
A short working-capital facility bridges the demand while you adjust, so supply is not interrupted. It is repaid as your own customers pay you.
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