A loyal customer asked for extended payment terms — should I agree, and how do I fund it?

Extending terms for a loyal customer can be worth it, but it costs you cash; invoice finance funds the longer wait so you keep the relationship without carrying the strain. A good customer asking for longer terms puts you in a bind — you want to keep them, but every extra day they take is cash out of your working capital.

A loyal customer asked for extended payment

2 min read

Keep the relationshipLoyalty matters

But it costs cashLonger wait

Fund itInvoice finance

The relationship-versus-cash call

A good customer asking for longer terms puts you in a bind — you want to keep them, but every extra day they take is cash out of your working capital.

Fund the extended wait

Invoice finance releases cash from the invoice as you raise it, so you can grant longer terms without carrying the strain yourself. Model the effect on the invoice finance calculator.

Agree terms with eyes open

Where you extend terms, consider building the cost into pricing at renewal. A loyal customer is worth keeping — but not at a silent loss.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

Should I give a loyal customer longer to pay?

It can be worth it to keep a valued relationship, but longer terms cost you cash. Fund the wait with invoice finance and, where you can, build the cost into pricing at renewal.

How do I fund extended payment terms for a customer?

Invoice finance releases cash from each invoice as you raise it, so you can grant longer terms without carrying the strain. You're paid promptly while the customer pays on their extended terms.