human909 wrote:I don't know why any business gives anything beyond the normal credit time. There are banks for loans if you have cash flow problems don't use suppliers for loans. If you don't pay why should I supply you more goods?
And if every retailer is doing the same thing... they're all pushing to and beyond the limits, but they all seem to be paying eventually... what does a wholesaler do then?
Put everybody on credit hold and refuse to supply goods to anybody? And what then for the big shed full of goods that they've already paid for and are paying interest on?
Wholesalers/distributors/importers also have to keep business turning over. They've got a lot of money tied up in inventory, and they need to get it out the door. If somebody is selling product and wants more... they clearly have a revenue stream, even if they're being a bit recalcitrant about passing it on.
So, do you sit on a big pile of inventory that's costing you money, or do you keep supplying somebody who will almost certainly
sell the product and make you money? And what's your threshold of "almost certainly"?
Business is about making judgement calls. Good judgement makes money. People seem here to have made bad judgement calls on BSCs prospects, and have lost money. And that's what it's all about.