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Author: JeanDavid Big funky green star, 20000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 18386  
Subject: Re: Q: Finding Debt Date: 7/20/2003 7:50 AM
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Specifically, is Accounts Payable considered debt for this purpose?, the answer is no.

But if you let them go for 10 days or so, you forfeit a 2% to 10% discount, and may start incurring interest and service charges after 30. I worked for a large outfit that could get away with it, so they tended to let their A/P go 90 days or more and made money on the difference that more than covered the interest and charges (they are not succeeding at that anymore and I would no longer touch their stock with any of my money). But before that, I worked for a small outfit and they paid within 10 days.

So should not A/P be divided into two pieces? Non-debt: which forfeits no discounts, pays no interest and service charges. Debt: which has forfeited discounts, pays service charges and interest.
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