When big companies strangle small ones

By imposing 60, 90 or even 120-day payment terms, large corporations’ business practices weigh heavily on SMEs, pushing some even into bankruptcy due to a lack of cash flow. By Mehdi Atmani.


The anxiety took hold five years ago and hasn't let up since. The anger as well. Ricardo Motta*, age 44, is CEO of a small construction company in northern Vaud with a dozen employees on payroll. Like many other business owners, this father of three lives a striking business paradox that could cost him his company: an order book that is overflowing and coffers that are empty. "I never know whether I'm going to have enough to pay my employees and suppliers at the end of the month. More than 60% of my invoices are still open despite my 45-day payment terms. I'm owed nearly 55,000 francs for the last three months."


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Source : Magazine PME