As Eric Eagan reported in his Capital Matters post, A Simple Cash Flow Fix for Small Businesses?, a Washington Monthly article suggested that extended payment terms were holding back growth among small businesses. That message reached a broader audience last Friday night as the author, Jeffrey Leonard, appeared on my daughter’s favorite TV program, Comedy Central’s Colbert Report.


A regular feature of Stephen Colbert’s show is his interview with authors, politicians and celebrities. Leonard’s interview brought attention to the business practice of larger businesses extending payment terms with its smaller suppliers. Introducing the author, Colbert stated, “my guest tonight says that big businesses are using small businesses as their bank.”


Interesting that this issue has attracted such mainstream attention. At Ariba, our Receivables Financing solution powered by The Receivables Exchange and Supply Chain Finance offer valuable financing options for small businesses.


On Thursday, February 24, 2pm EST – 11am PST, we are hosting a free webinar on receivables financing, with a small business explaining how this financing option assists with cash flow. Click here to learn more and to register.


To view a replay of the Colbert Report interview, click here


And if you have a strong opinion on this issue, please leave a comment.