As C&T suppliers and retailers struggle to awaken from a 30 year credit-fuelled dream, one positive result is the growing realisation that cash is king, says Brian Moore
Given that retailing operates one of the few business models where customers pay cash, while suppliers give retailers up to 90 days’ free credit, the resulting cashflow advantage tends to be underestimated even by retailers. They do not appear to appreciate the commercial advantages of operating a ‘money machine’ that happens to sell C&T products and/or other merchandise.
Many consumers, businesses, banks and governments are now deleveraging and paying down debt to such an extent that relatively little cash is finding its way into increased consumption, and the result has been the flatline demand that will challenge us all for the foreseeable future.. . .
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