For companies specializing in catalytic technologies, cash flow management is essential. Offering or accepting Net 90 payment terms can have significant impacts:
1. Cash Flow Management: Companies need to ensure they have sufficient working capital to cover operational expenses while waiting for payments. This is especially important for startups and small businesses in the catalytic industry.
2. Supplier Relationships: Often, these companies source raw materials and components from various suppliers. Negotiating favorable payment terms like Net 90 can improve supplier relationships and provide more flexibility.
3. Project Funding: Catalysis projects, whether in research and development or in industrial applications, often require substantial upfront investment. Understanding financial terms like Net 90 helps in better financial planning and securing necessary funding.
