Lara GuevaraSupply Chain expert (Product and Service)

Supplier Terms Are Your Cheapest Capital

24 Aug 2026 · 1 min

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Lara Guevara explains how to use supplier payment terms as free working capital. Instead of taking expensive loans when cash gets tight, negotiate longer payment windows like Net 60 with existing suppliers. You get interest-free financing without the cost of credit lines or cash advances.

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Have the supplier terms conversation before you take on any inventory debt. When cash gets tight from a cost increase, the instinct is to go find financing—a credit line, a cash advance, something—but the cheapest capital you have access to is usually sitting inside a supplier relationship you already have in the form of payment terms you never asked for. Net 30 instead of deposit plus balance. Net 60 if you've been reliable for a couple of years. That conversation. Cost you 1 inel, the loan cost you interest for the next 3 years.