Scenarios
Compare scenariosTop customer slips 45 days
Apex Retail Holdings pays 45 days late. Triggers a minimum-cash breach around week 7.
- Apex Retail Holdings pay +45 days later
Mitigation: defer AP, factor, optimize
Same slip, mitigated: defer deferrable vendors 21 days, factor two of the top customer's open invoices at 80% advance, and let the AP optimizer defer bills where needed.
- Apex Retail Holdings pay +45 days later
- Delay deferrable bills 21 days
- Factor 2 invoice(s) at 80% advance, 2.0% fee
- AP optimizer on
Downside: 8% collections haircut
Across-the-board 8% shortfall in collections.
- 8.00% haircut on all customers