For the majority of businesses, delays in payment isn’t just an inconvenience—it’s a barrier to growth, hiring, and day-to-day operations.
We see firsthand how slow-paying customers, particularly large enterprises with extended terms, can disrupt cash flow and create financing gaps. That’s why we provide fast, flexible funding solutions that help SMEs unlock the cash tied up in their receivables—turning waiting periods into working capital.
of SMBs experience cash flow challenges directly tied to late or extended payments from larger buyers.*
of small businesses say delayed payments disrupt growth plans, hiring, and inventory procurement.**
*U.S. Bank Study
**Intuit QuickBooks Small Business Insights Report
Extended payment terms refer to agreements in which a buyer is allowed a longer period—often 60, 90, or even 120 days—to pay an invoice. For suppliers, this can present a significant cash flow challenge.
While it may help strengthen customer relationships or secure larger contracts, the delayed payment cycle can strain working capital, making it harder to cover day-to-day expenses like payroll, inventory, or fuel. For businesses that rely on steady cash flow, extended terms often force them to seek alternative financing solutions, such as invoice factoring, to bridge the gap between delivering goods or services and actually receiving payment.
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Enterprise buyers often use extended payment terms—ranging from 60 to 120 days or more—as a strategic way to manage their own liquidity. While this may benefit them, it can place significant pressure on suppliers trying to maintain steady cash flow. If you’re working with a customer who has extended their payment terms, you’re not alone. For over 19 years, we’ve helped businesses navigate these challenges and access the working capital they need to operate and grow with confidence.
Clients choose eCapital when they need an engaged, solutions-oriented, long-term credit partner with proven capacity, creativity, and continuity. Our expertise is customization—whether on a $5 million or $150 million facility, employing a meticulous, hands-on strategies.
Our tight-knit group of financing experts are agile and client-centric, yet backed by extensive resources with the scale to conquer any challenge. This means we are going to be a better credit partner through every business cycle, bringing capabilities and passion—as patient, flexible problem-solvers—other providers simply do not have. Our track record speaks for itself.
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Extended Payment Terms refer to the practice of lengthening the period of time a buyer has to pay for goods or services after purchase. Instead of requiring payment immediately or within a short period (such as 30 days, which is quite common), a seller might provide extended payment terms of 60, 90, or even 120 days.
This practice is often used as a financial strategy by businesses, particularly in uncertain economic times. By extending payment terms, companies can maintain more cash on hand, enhancing their financial flexibility and helping them navigate financial challenges more securely.
Customers often request longer terms to improve their own cash flow, align payments with their revenue cycles, or negotiate more favorable purchasing conditions—especially in large or long-term contracts.
They can strain your cash flow, especially if you have to cover expenses like payroll, fuel, inventory, or rent while waiting to be paid. Over time, this can limit your ability to grow, invest, or even operate efficiently.
Suppliers often turn to invoice factoring or accounts receivable financing to convert unpaid invoices into immediate working capital. Other options include renegotiating terms, tightening credit policies, or offering early payment discounts.
Not necessarily, but the longer the payment window, the higher the exposure. Monitoring customer credit and working with financing partners who offer credit checks can help mitigate risk.
