Imagine your customers asking you for a loan. They want you to not only lend them money but they don’t want you to charge them any interest; AND, they want several months to pay you back. When you allow customers to owe you money, your accounts receivable, and they don’t pay you back for two or 3 months, or even longer, that is what you have done. You have given your customers an interest free loan.
The negative part of this is that you don’t have the cash to operate your business. You don’t have the cash to pay your bills, pay your employees, pay your rent. You may not even have the cash to pay yourself. That is not the reason you went into business.
There are many things you can do the remedy the problem of slow paying customers How you manage your accounts receivable, how your structure them and even how you allow some customers to pay you over time is entirely up to you. Yet obviously the faster you are paid for your goods and services, the better off your business is.