In the tech bubble, many parties
extended vendor credit because there were big profits to be made in the future.
Not exact matches
PAYDEX is primarily used by
vendors and suppliers to judge your business when determining what terms to
extend on trade
credit (e.g., net 30, net 60, etc.) Typically, the better the score, the more generous the terms
extended.
It doesn't matter if you are a fixed income investor considering purchasing bonds issued by a company, an equity investor considering buying stock in a firm, a landlord contemplating leasing a property to an enterprise, a bank officer making a recommendation on a potential loan, or a
vendor thinking about
extending credit to a new customer, knowing how to calculate it in a few seconds can give you a powerful insight into the health of company.
Here are three
vendors that report payments to business
credit bureaus, and that are flexible when
extending credit.
For a major sports apparel retailer that wanted to
extend credit terms with its
vendors, Standard Chartered developed a
vendor financing program that enables
vendors to access funding despite the
extended credit terms.
Through this program, American Express will pay off
vendor invoices on your behalf,
extending you a line of
credit of up to $ 750,000.
PAYDEX is primarily used by
vendors and suppliers to judge your business when determining what terms to
extend on trade
credit (e.g., net 30, net 60, etc.) This is important because having more time to pay your bills can help you better manage cash flow.
Mitigate your potential risks by reviewing another company's
credit history and assessing the amount of
credit to
extend to partners and
vendors
PAYDEX is primarily used by
vendors and suppliers to judge your business when determining what terms to
extend on trade
credit (e.g., net 30, net 60, etc.) Typically, the better the score, the more generous the terms
extended.
Lowered customer debtor days and achieved
extended credit terms from
vendors.