Jul 13, 2009

Why Paying Bills on Time Makes Sense

Who can pay their bills on time right now, especially when your customers or clients aren't paying you on time? But if you can pay your bills on time, it can save you money and help you in the long run. Here's why:

  • It can save you money if you negotiate a discount for paying early or on time.
  • It saves and builds your reputation.
  • It encourages your suppliers and vendors to recommend your business and give you excellent service.
  • It gives you a payment cushion for when you REALLY need to delay payment, thanks to the goodwill you've built up.

And here's something else to consider: If you can't pay new invoices as they come due, even after you've trimmed your expenses, adjusted your strategy, and put some new marketing in place, you have to ask yourself whether your business is viable in the long run. Okay, end of annoying post.

In a later post I'll talk about what to do if you have to pay a bill late, which may be more applicable in this environment.