Main customers cannot pay on time due to financial problems

[niche]

Some of the customers are ad networks who will usually pay their vendors, online publishers on a specified date. However, larger internet companies are extremely aggressive in causing losses to the smaller businesses , so they are not able to pay their vendors on time. The vendors have expenses like domain renewal fees, web hosting, so if the payment is delayed, they face problems in domain renewal or have to use their savings. Other than diversifying the income sources, what are the options available to a business owner when their main customer cannot pay on time?

 

[Suba]

If customers cannot pay on time due to financial problems, of course, it can worsen the cash flow of your business. Moreover, if you ignore cash flow management, the results will be worse. One of the causes of poor cash flow is bad debt or uncollectible receivables, which you have to allocate to bad debt expenses. You must also be able to determine the highest ceiling for receivables from total sales, for example 10%. so that if there is a failure to pay receivables by customers, the allowance doubtful account will not interfere with the smooth cash flow.

Besides that, you also need to control receivables and make a list of receivables starting from the amount and when they are due.