The oil trade is still well stocked, but margins are narrowing. What is exciting is whether discounts will follow trade prices.
What does this mean for you?
For SMEs, the fall in oil prices is generally proving beneficial. The lower spending on fuel has a direct impact on working capital. How will entrepreneurs use this space smartly?
Paying suppliers faster does not seem like the first choice, but it can be very positive in the long run. Punctual payment will not escape credit rating agency sleuths.
Provide timely information to your credit insurer
Providing timely financial information about your own business to credit insurers is becoming increasingly important. This way, they are better able to make a proper assessment of your business and can often issue higher credit limits to your suppliers. That means you will also get more credit from your supplier! Supplier credit will become an even more important financing tool in the future.
