Everyone is focusing on the margin but no one is talking about the impact on cash flow.
'Under the current Marketplace pricing model, accelerated payment is included within the commissioncharged and all suppliers are paid within 5 days of delivery. This debtor factoring service is provided by athird party and the cost to provide this was included within the existing commission structure'
a percentage of that 5% was going to the third party anyway. Offering 33 day terms will be a great advantage for the business as a lot of their expenses are likely on 30 days terms creating a better cash flow situation.
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