- A vendor sends you an invoice for $100.
- It's due within 30 days.
What do you do?
- If you pay it now, you're immediately out $100.
Let's say you hang onto the $100 for 30 days.
You use the $100 to invest into Product A, which you know gives you a net return of 10% within 30 days.
- You invest the $100 into Product A.
- You net $10.
- You pay the invoice on Day 30.
You're up $10 by hanging onto the $100 for 30 days.
You do that many times over for every one of your business's bills, and you're up bundles-of-bundles.
- Wait as long as possible.
- Invest the cash into something profitable.
- Net extra cash.
Posted on September 09
Next tip »