Re:Why I don't believe in Uber's Success
by aserafini on Friday January 20, 2017 @02:28AM
(#13442231)
This is how Amazon benefits from free cash flow in their retail business. With payment days of >90 days to their suppliers but almost immediate payment from their customers they get 90 days to reinvest that money at a profit before paying it back. Essentially an interest free loan from their suppliers.
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Re:Why I don't believe in Uber's Success
by chetanahuja on Thursday February 02, 2017 @03:11AM
(#13548947)
> almost immediate payment from their customers
Isn't there a gap between customer making the credit card payment and the bank transferring the actual money into Amazon's account?
Re:Why I don't believe in Uber's Success
by aserafini on Thursday February 02, 2017 @05:15PM
(#13555346)
Probably. And they also won't always sell an item as soon as they receive it, which eats into free cash flow. But generally speaking, they get paid for goods by customers before they need to pay the supplier, which creates free cash flow.