Stop Giving Out Free Loans

You might not think of yourself as a lender….But if your customers aren’t paying you on time, that’s exactly what you’re doing. Financing their operations with your cash.

When you extend terms like net 30, 45, or 60, you’re giving customers a window to pay. That’s normal, but when they miss those deadlines and you keep delivering, you’re essentially offering an interest-free loan. Meanwhile, your own business is footing the bill…covering payroll, rent, and vendor payments without the cash that should already be in your account.

Late payments create a ripple effect that hits harder than most leaders realize:

• Increased Admin Costs: Every overdue invoice adds hours of follow-up from your team….phone calls, emails, reminders. That’s time that could have been spent on revenue-driving work.

• Strained Cash Flow: While you wait on customer payments, you may have to dip into reserves, delay investments, or even stretch your own vendor payments.

• Hidden Financing: You’re acting like a bank, but unlike banks, you’re not charging interest for the risk. That puts the burden of financing squarely on your shoulders.

• Growth on Hold: With cash tied up in receivables, it’s harder to invest in expansion, hire staff, or take on new opportunities.

The credit card experts have spoken

And you’ll wanna hear what they’re saying about this top-rated cash-back card.

The analysts at Motley Fool Money unlocked the secret to a one-card wallet, thanks to an unmatched suite of rewards and benefits that potentially give this card the highest cash-back potential they’ve seen.

The details:

• up to 5% cash back at places you actually shop

• no interest until nearly 2027 on purchases and balance transfers

• A lucrative sign-up bonus

• no annual fee

Learn more and apply.

So, what can you do to stop financing your customers?

• Tighten Terms: If customers regularly miss 45-day terms, shorten them to 30 or even 15. Contracts may lock you in so be careful.

• Reward Early Payments: Offer small discounts to customers who pay ahead of schedule. Only if it makes sense!

• Automate Invoicing and Reminders: Make it harder for invoices to slip through the cracks. Always deliver via email, no snail mail.

• Set Clear Boundaries: Train your team to pause new work until overdue balances are resolved. You have to take a stance.

Here’s the bottom line: every day an invoice goes unpaid, you’re carrying someone else’s debt. By tightening your collections and setting boundaries, you keep your cash where it belongs…in your business, fueling your growth.

Sponsoring the Cash Flow Chronicles today is I HATE IT HERE!

Thank you for supporting our newsletter. Each time a reader engages with our sponsor’s ad, this directly supports CFC’s mission to be the TOP FINANCIAL newsletter Beehiiv has to offer.

Even if you do not buy a product, subscribe, etc. this greatly supports our mission. Take 5 seconds today and check them out!

HR is lonely. It doesn’t have to be.

The best HR advice comes from people who’ve been in the trenches.

That’s what this newsletter delivers.

I Hate it Here is your insider’s guide to surviving and thriving in HR, from someone who’s been there. It’s not about theory or buzzwords — it’s about practical, real-world advice for navigating everything from tricky managers to messy policies.

Every newsletter is written by Hebba Youssef — a Chief People Officer who’s seen it all and is here to share what actually works (and what doesn’t). We’re talking real talk, real strategies, and real support — all with a side of humor to keep you sane.

Because HR shouldn’t feel like a thankless job. And you shouldn’t feel alone in it.

Sign Up Free

NEW FOR 2025!

I have a high focus helping other vets out there and want you all to succeed, so I created this Skool group below called the Profit Platoon. Would love to have you there!

Contact me if you’d like to network or partner together. I’d love to chat with you more about the services I offer on the side through Guernsey Consulting. If you do not know, I work full time in Treasury Management and do consulting on the side. Would love to chat or network with you about it.

Some of those services are listed below that we can help you with!