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Accounts payable financing is money owed by the business to suppliers; amounts owed to others (creditors) on an open account for goods and services purchased by a business.

Should I borrow to cover overdue payables?
In many cases, yes. As a business, preserving a good standing with your creditors/suppliers is critical. Not only do you want to preserve business relationships, you want to preserve your business credit.

Your business credit – Dun & Bradstreet
Dun & Bradstreet provides commercial credit reporting services on businesses worldwide. Many business lenders and suppliers will base your ability to "re-pay" on your Dun & Bradstreet rating. If your business is not listed with Dun & Bradstreet (D&B) or if D&B reports you as a high credit risk, securing financing or a new supply line can be difficult.

How can I borrow to cover payables?
If you’re in poor standing with current creditors/suppliers and either not listed with D&B or listed as a high risk, a principle of your company may need to personally guarantee any borrowing. This could still be worth it, even to cover accounts payable, if it means preserving your business credit.


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