Interconnected businesses like SME’s and their distributors are reliant on each other. When a distributor collapses it can impact your business significantly, causing cash flow problems and leading to a potential business loss. It’s a good idea to be aware of all businesses the SME might be involved with. Understand their potential for success or failure. Focus on your own cash flow, keeping invoice terms short, following up on expected payments, and having a good idea of when they are due. SMEs can protect themselves with some foresight.
Read more: Protecting your business when distributors collapse
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