Unfortunately, not all businesses run that way and some delay payments to their suppliers, this is sometimes with the thought process of ‘it’s better in our bank than in theirs’ and whilst there is an obvious benefit to cashflow in doing this, it is not only unethical but can have many negative consequences.
As the Finance Manager at We are Acuity, I can safely say that, like our clients, this is not the approach that we take. We believe in treating our suppliers in the same way that we like to be treated and therefore paying them on time without delay is part of this. This is not only the ‘right’ thing to do but we have found that this can also bring a host of benefits, these can include things like:
- Allowing you to build stronger relationships with your suppliers through gaining their trust.
- Enabling you to negotiate more favourable deals in the future.
- Minimising supply issues and disruption. Making late payments can cause disruption to the supply of goods or services which may in turn affect the onwards supply to your clients, at best this could create an awkward/embarrassing situation, at worst mean the client thinks twice about using you again.
- Improving employee wellbeing. When businesses make late payments, their employees will be fielding calls from potentially disgruntled suppliers causing unnecessary stress and worry for your staff.
So, if you’re in a position to do so then please pay your suppliers on time, it will trickle down the funnel and make everyone’s cashflow that little bit easier.
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Or if you'd like to read more about Local Marketing have a look at our blog page "Local Thinking': https://www.weareacuity.com/local-thinking-our-blog