Company A has hit a bit of a slump in terms of its sales and collections of accounts receivable lately and as a result cash on hand is lower than normal. Company A’s production team has not slowed down as a large order from Company B’s is scheduled to ship next week. This has lead to some aging accounts payable balances and suppliers are expecting payment soon. A key ingredients supplier is threatening to hold a much needed shipment that, if not received, will impact the ability to fill the order from Company B. Company B’s payment terms are very short and once the order is shipped payment is generally received within a week.

How you would approach this situation to ensure the ingredients shipment is not held back, the Company B’s order is fulfilled, and all other suppliers remain happy despite their aging accounts payable balances.

Thank you!

I'm sure you have heard of banking arrangements, it is customary to have a relationship with bankers to provide short term finance. A review of credit policy is also suggested. I would also sack the academic copywriter