It would seem this is only helpful if you have more outflow of payments than inflow. If other customers/suppliers are using the same tactic, all it does is slow down delivering products and services.
Generally, for services provided, Accounts Payable aim for 60 days after service provided, and Accounts Receivable aim for 30 days since service provided.
I dislike it, and have a far nicer relationship with companies that pay on-the-spot. Indeed, I bend over backwards for such clients.
