The 120-Day Float: How Japanese Payment Norms Are Quietly Funding Your Supplier's Balance Sheet at Your Expense
Extended payment terms have long been standard practice in Japanese supplier relationships, but for US importers operating under tighter liquidity constraints, the true cost of that float rarely appears in procurement analysis. This article examines the structural origins of Japan's extended-terms culture, quantifies the working capital impact for American buyers, and outlines negotiation approaches that protect both the relationship and the balance sheet.