Fundbox Podcast: Study on Innovative Net Terms

Episode 3: New study reveals how alternatives to trade credit can help small businesses grow up to 35%

A pushpin marks the 30th day on a calendar.

At any time, American small businesses are losing immediate access to an estimated $900 billion in liquid capital, through their own practice of offering trade credit to their B2B customers in the form of net terms (payable net 30, net 60, or longer). Waiting to get paid no longer has to be a cost of doing "business as usual".

In this podcast, we discuss the latest independent research on how to solve the payment delay crisis. A new study from Frost & Sullivan, a growth, strategy consulting, and research firm, shows just how much money’s involved and what can be done about it.

The Frost & Sullivan research shows that by receiving payments when their work is complete — instead of having to wait — B2B sellers can enjoy:

  • 25% to 35% enhanced growth

  • An average of 10% lower operational costs, and valued at 4-6% of revenue

  • A reduction in risks like customer nonpayment, churn, and fraud, worth 3-5% of revenue

The report goes on to suggest that small businesses can achieve these benefits of immediate payments by using what they call Next Generation Credit and payment solutions.

See also our related Fundbox blog article: New Research Shows How to Stop B2B Trade Credit from Stunting Small Business Growth.

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