When it comes to understanding how a business manages its money, two essential terms often pop up: accounts receivable and accounts payable. These are basic, yet powerful parts of financial management that every business, no matter the size, deals with regularly. While they might sound similar at first, they actually represent opposite sides of a… Continue reading Accounts Receivable vs Accounts Payable: Key Differences
Tag: Credit Management
Credit Limits in the Healthcare Supply Chain: Protecting Cash Flow Without Disrupting Care
In the world of healthcare supply, credit is not just a financial tool—it’s often a lifeline. Suppliers provide critical medical products to a wide range of customers: public hospitals, private clinics, retail pharmacies, wholesalers, and distributors. Many of these buyers depend on credit terms to manage their cash flow, especially in systems where reimbursements are… Continue reading Credit Limits in the Healthcare Supply Chain: Protecting Cash Flow Without Disrupting Care
Factors Influencing Longer DSO
Several factors can contribute to longer Days Sales Outstanding (DSO), indicating delayed payment collection for a business. Here are the key factors: 1. Extended Payment Terms: Offering customers longer payment terms can naturally lead to a prolonged collection period. While this may be a strategic decision, it also increases the DSO. 2. Inefficient Invoicing: Delays… Continue reading Factors Influencing Longer DSO
