Apart from the general issue that cash flow is the most...

Apart from the general issue that cash flow is the most important component of a trading business (and if you sat in any boardroom in the world and suggested that the company doesn't need cash, regardless of how much is in the bank, you would be frog marched to the door, ) it also increases exposure to the risk of default should the client business go belly up, you become a unsecured creditor and stand in line for cents in a dollar. Now that's not such an issue with DoD and I know everyone will pooh pooh the idea of that happening with Sealy but shyte happens that no-one expects often enough. Long payment terms effectively tie the supplier to the fortunes of the client company. That also exposes the shareholders to the same risk profile and dampens the sp. Standard Accounting & Finance textbook teaching in any University.