Trade Credit: When ‘Status Quo’ Means It’s Time For A Change

For Eyal Shinar, CEO of Fundbox, understanding the burden that cash-flow bottlenecks and delayed invoice payments have on B2B companies came through personal experience.

His mother, who owned a small staffing business, regularly faced cash-flow constraints as business clients would wait months to pay for staffing services provided. The business grew quickly, but high growth means higher costs. With corporate customers extending days sales outstanding (DSO) for the business, finances were tough.

“She had a revolving line of credit, but it wasn’t enough,” Shinar told PYMNTS’ Karen Webster in a recent Masterclass Video interview. “She just grew too fast to make payments. On paper, the business was doing very well, but in reality, she didn’t have enough cash.”