Small business owners wait longer to be paid


The cash-flow gap is increasing for small businesses as they must continue paying workers and buying equipment while their collectible accounts grow.

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The cash-flow gap is increasing for small businesses as they must continue paying workers and buying equipment while their collectible accounts grow.

t’s a hangover of the great recession and one that can cripple small contractors and suppliers such as Maxwell-Hendricks’ Boanerges Group, which must continue to pay workers and buy equipment to stay afloat while waiting for new cash to flow in. 

“A lot of small businesses have to factor out their profit,” Maxwell-Hendricks said, “and pay out their profit to make ends meet.” 

The problem is so pronounced that at least two Portland business support groups have developed significant bridge lending programs that cater to small companies. 

A 30-day pay window once was the norm, said Valerie Plummer, who directs the Oregon Microenterprise Network, the statewide group of business support centers. Now it’s 60, even 90 days. 

“For a small business … it could be the death nail,” she said. “You’re toast.”

Read more at OregonLive.com.

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