Originally Posted by
Lizard
In certain types of contracting business, some would say it pays to invoice everything you can and write credits when you need to - if you're not writing the odd credit, you're probably not asking for enough in the invoicing. And sometimes, it is also better to finance the cashflow yourself to keep a regular customer who always pays a month late, but never argues the bill. Likewise, for a finance company, if they're not having to write off a few bad debts or accept a few overdue accounts, they're probably not going to be taking enough business at the edge to maximise the profits.