Strategies for Dealing with Term Push Back:  When Customers Dictate their Terms

Speaker: Scott Blakeley LLP

Credit teams are witnessing more customers who are disregarding supplier-set terms and unilaterally extending these terms with a so-called terms push back strategy (TPS). While TPS allows the customer to preserve working capital, improve cash flow and grow inventory, the supplier’s DSO and profit margin suffers. A key metric for the customer’s finance team is now days payable outstanding. In this webinar, Scott Blakeley, Esq., will discuss:

• TPS and Trade Credit (Trade credit as driver of the economy; Large companies sitting on record cash holdings but increasing the days to pay suppliers; Customers stretching supplier terms to preserve cash and fill working capital gaps; Customers extending payables has become a best practice)
• Added Reasons for TPS (Customer benchmarking, customer mergers, international influence and positive TPS press)
• Key TPS Metrics (Cash conversion cycle, days payables outstanding, days sales outstanding, and days inventory outstanding)
• Supplier Strategy for Dealing with TPS, including cannot single out terms, Robinson-Patman, two price lists, contract controls, loan covenants, credit insurance, early-pay discount, annual volume rebate

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