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In a Pinch

In the article, In a Pinch, the author C. J. Prince discusses the different paths a business
can take to increase cash flow. Prince suggests that every business should operate with a pay-in-advance set of terms (Prince, 2008). Understandably, this is not always possible for every business. The main goal for any company is to have as many clients on the pay-in-advance model as possible. When changing the payment terms to reduce
the credit advance, it is always wise to be upfront about the change with the customer (Prince, 2008). If a customer is refusing to accept your terms and continually pays invoices after the due date, consider dropping them as a customer (Prince, 2008). Also, Prince recommends investigating a new company prior to extending a line of credit (Prince, 2008).