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  • Answer Upon - Slow Accounts Payable in Large Corporations Hurt Small Businesses

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    . Great makes us competitive here, but we have a standard of living to protect, if we erode our job base and therefore having a declining middle class we lose anyway. Home Depot loses their market and we lose to China. There of course is much more to this issue, but this is one thing perhaps if you run a small business that you have been thinking of? Consi
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    So many times you hear of small businesses working their rears off in order to satisfy large corporate clients only to find them selves buried in bills due to those large corporations slow payments. Unfortunately this is a typical strategy to hoard cash. After all the slower they payout the more money they have in cash flow. It is not uncommon during downturns in the economy for large companies to have outstanding invoices in excess of 120 days.

    This is devastating for the small businessperson who is not anticipating on such slow payments, but stringing out the payables now a days it seems is something all corporations do. It is almost as bad as Sears in the 70s and 80s. If you sell to large retailers you have to really watch your small business receivables as these corporate clients make you their own private vendor bank.

    Now then let’s look at the new boss at Home Depot, from GE, savvy guy, watching numbers and look at their CFO; both sharks. Indeed this is great for shareholders equity, but devastating for the small manufacturers. If the small business cuts them off for slow pay, will they then do the same thing to another small business or will they buy elsewhere? Will these large companies look to Sam Walton’s buy American First philosophies? Or will they change with the times like the current corporate Wal-Mart?

    No, they are beholden to Wall Street to save a buck and if that buck is in China, tough. Great makes us competitive here, but we have a standard of living to protect, if we erode our job base and therefore having a declining middle class we lose anyway. Home Depot loses their market and we lose to China. There of course is much more to this issue, but this is one thing perhaps if you run a small business that you have been thinking of? Consid

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    s in the economy for large companies to have outstanding invoices in excess of 120 days.

    This is devastating for the small businessperson who is not anticipating on such slow payments, but stringing out the payables now a days it seems is something all corporations do. It is almost as bad as Sears in the 70s and 80s. If you sell to large retailers you have to really watch your small business receivables as these corporate clients make you their own private vendor bank.

    Now then let’s look at the new boss at Home Depot, from GE, savvy guy, watching numbers and look at their CFO; both sharks. Indeed this is great for shareholders equity, but devastating for the small manufacturers. If the small business cuts them off for slow pay, will they then do the same thing to another small business or will they buy elsewhere? Will these large companies look to Sam Walton’s buy American First philosophies? Or will they change with the times like the current corporate Wal-Mart?

    No, they are beholden to Wall Street to save a buck and if that buck is in China, tough. Great makes us competitive here, but we have a standard of living to protect, if we erode our job base and therefore having a declining middle class we lose anyway. Home Depot loses their market and we lose to China. There of course is much more to this issue, but this is one thing perhaps if you run a small business that you have been thinking of? Consi

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    ve to really watch your small business receivables as these corporate clients make you their own private vendor bank.

    Now then let’s look at the new boss at Home Depot, from GE, savvy guy, watching numbers and look at their CFO; both sharks. Indeed this is great for shareholders equity, but devastating for the small manufacturers. If the small business cuts them off for slow pay, will they then do the same thing to another small business or will they buy elsewhere? Will these large companies look to Sam Walton’s buy American First philosophies? Or will they change with the times like the current corporate Wal-Mart?

    No, they are beholden to Wall Street to save a buck and if that buck is in China, tough. Great makes us competitive here, but we have a standard of living to protect, if we erode our job base and therefore having a declining middle class we lose anyway. Home Depot loses their market and we lose to China. There of course is much more to this issue, but this is one thing perhaps if you run a small business that you have been thinking of? Consi

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    cuts them off for slow pay, will they then do the same thing to another small business or will they buy elsewhere? Will these large companies look to Sam Walton’s buy American First philosophies? Or will they change with the times like the current corporate Wal-Mart?

    No, they are beholden to Wall Street to save a buck and if that buck is in China, tough. Great makes us competitive here, but we have a standard of living to protect, if we erode our job base and therefore having a declining middle class we lose anyway. Home Depot loses their market and we lose to China. There of course is much more to this issue, but this is one thing perhaps if you run a small business that you have been thinking of? Consi

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    . Great makes us competitive here, but we have a standard of living to protect, if we erode our job base and therefore having a declining middle class we lose anyway. Home Depot loses their market and we lose to China. There of course is much more to this issue, but this is one thing perhaps if you run a small business that you have been thinking of? Consider all this in 2006.

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