How Overdue Receivables Spike Your Borrowing Costs

In this episode of Cash Flow Conversations with Fexingo, Lucas and Luna explore how overdue receivables don't just starve your cash flow—they can quietly raise your borrowing costs by 50 to 150 basis points. They break down a 2025 Fed study showing that small businesses with 30 percent-plus of receivables past due pay an average of 2.3 percentage points more on credit lines. The hosts walk through the mechanism: lenders view aging receivables as a leading indicator of distress, adjust risk premiums accordingly, and even trigger loan covenants. They discuss practical steps like offering 2/10 net 30 terms to speed collections, using aging reports to prove creditworthiness, and why sub-5 percent over-90-day receivables can unlock a lower rate. Concrete, actionable advice for any business owner who borrows. #ReceivablesAging #BorrowingCosts #SmallBusinessFinance #CashFlow #CreditLines #InterestRates #Lending #RiskPremium #AccountsReceivable #LatePayments #2PercentDiscount #Net30Terms #BusinessBorrowing #FedStudy #Covenants #Business #Finance #FexingoBusiness Keep every episode free: buymeacoffee.com/fexingo