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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

[button link=”https://nacmbcs.org/strategies-for-dealing-with-term-push-back-form/”]Register Now[/button]
*Free Webinar for Members Only!
*$79 for Non-Members

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