When we wrote our business
plan and figured out our working capital, we thought we would be paid within 30
days of sending out the invoice. To be safe, we used 45 days in our models and
made sure to have funds available.
The inflation rate is now
over 10% and there has been a 40% devaluation of the currency. This means it is
really important to collect cash quickly.
We just signed a new
agreement with a mobile platform and it stated they would pay within 30 days.
They did on the first three invoices, but then they took 60 days and now are up
to 120 days. They are much bigger than us and we need them to survive but with
a 120 delay in payments we are running out of cash every month. The banks won’t
help. In real terms, we never get our money back. We can’t delay our payments out
to 120 days.