How Late Payments Accumulate Like Interest on Your Business

In this episode of Cash Flow Conversations with Fexingo, Lucas and Luna dive into a hidden cash flow killer: the compounding effect of late payments. Using a concrete example of a $10,000 invoice at 60 days overdue, they show how delays silently inflate working capital needs and borrowing costs. They explain the 'carry cost' of receivables, how a single slow-paying customer can cascade into a $50,000 annual drag, and why many small businesses ignore their own internal cost of capital. Lucas shares a rule of thumb: every 30 days past terms, the effective discount you're giving your customer is roughly equal to your annual cost of capital. They also discuss a simple spreadsheet model to calculate the true cost of late payments per client. If you've ever wondered why a good customer who pays late still hurts your bottom line, this episode offers a practical framework. #LatePayments #WorkingCapital #Receivables #CashFlow #SmallBusinessFinance #CostOfCapital #InvoiceManagement #Delinquency #BusinessFinance #FexingoBusiness #BusinessPodcast #AccountsReceivable #CarryCost #CustomerTerms #SpreadsheetModel #CashFlowKiller #AgingReceivables #FinanceForOwners Keep every episode free: buymeacoffee.com/fexingo