Treating Suppliers Fairly - ICM & BIS Managing Cashflow Series Part Four
When it comes to cashflow, it isn’t just about ensuring your invoices are paid on time. It encompasses the entire flow of money in and out of your business and covers your businesses dealings with your own suppliers.
So do you treat your suppliers as you would like to be treated?
In part four of the excellent Managing Cashflow guides from the ICM & BIS they provide as always the now obligatory checklist and top tips for how to manage your cashflow whilst protecting your relationship with your suppliers.
The guide can be downloaded by clicking the cover below:
As you might expect, we have many points we could make on this subject and in the absence of our MD, Operations Manager Adam Home elaborates:
“If you consistently demonstrate to your suppliers that you value their cashflow as much as your own, by paying amounts on or preferably before the due date, you will not only be demonstrating your ethical standards but you will also be garnering good will.
In addition to this, regular early payments may allow you to negotiate a reduction on future invoices given your pro-active payment history.
Finally if the worse does happen and your company experiences an unexpected cashflow shortage, previous prompt payments to suppliers may help you negotiate a suitable staged settlement.”
The Managing Cashflow series of guides is produced by the Institute of Credit Management in association with the Department for Business Innovation and Skills. The full series of guides can be found here.
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