• The company should process payments against purchases in a timely and systematic manner.
• The internal processes of the company should be designed such that the suppliers don’t face any avoidable delay or difficulty in receiving payment for the goods or services supplied to us.
• Many companies unnecessarily delay the payments to the suppliers. It creates a very bad impression about the company.
• The company should be as prompt in issuing payments to suppliers as it is in receiving payments from the customers.
• Prompt and efficient payment processing is very important in establishing long term good relationships with our suppliers.
• These suppliers can be helpful to us in difficult times, if we maintain a regular payment record with them.
• Some accounts departments (who are responsible for payments) are very notorious in issuing payments to the vendors. They harass the suppliers and give step-motherly treatment to them. This is very bad.
• The business leaders must ensure that the suppliers don’t face any harassment or delay in getting their due payments from our company.
• We must respect the credit period given to us and should not delay payments beyond that unless it is unavoidable.
• Everybody responsible for processing and issuing payments must be made aware that we are not doing any favor by issuing timely payments to the suppliers.
• Some companies fix a day of week when the payments are issued to all the suppliers.
• Good businesses issue the vendor payments proactively and also send it to their offices or transfer to their banks directly.
(Expert advice to GROW your business wherever you are, whenever you want.
SMEBusinessGuide.com… https://goo.gl/E3pfoQ)
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