Thirty, sixty or ninety days is more than a line on an invoice. It is a period during which working capital is tied up and unavailable for other operations.
With a new customer, examine payment history and the handling of disputes as well as price. A high rate is little help when the invoice remains overdue.
Financing cost can be priced in or reduced through a deposit, shorter terms or factoring, but each solution carries its own cost.
Model scenario: a carrier pays €920 in fuel, tolls and wages now but collects €1,120 after 75 days. At an 8 percent annual cost of working capital, financing those direct costs alone is roughly €15—not huge once, material across 80 invoices.
Official source: European Commission — Late payments
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