One of the key success factors in the survival of any business is getting business. A business with no clients is not a business it is an idea. However there is something just as important to the success of the business and that is to get paid for the business that you have done.

This is often where the problem starts. You go out and sell your services. You go out and provide your services. You submit an invoice and then you wait.

Now there are many companies that are a pleasure to deal with. They live up to their values and they treat suppliers with respect. There are unfortunately other companies that seem to attach no value to the concept of prompt payment and in fact seem to have a policy of delaying payment as long as possible.

Here's the problem that I have with this. These companies/businesses are run by people with families, friends, budgets, bills and responsibilities yet they seem to have no concern for their suppliers who are also people with families, friends, budgets, bills and responsibilities.

If you work for a salary, what would happen to you if your employer came to you at the end of the month and said. "Look I am really sorry but we just didn't have time to process your salary this month, but don't worry our next payment run is in two weeks and we'll get you on then." or the other favourite "We can't find the paper work. Did you submit your claim? Please just submit it again and we'll process it with our next batch." I am willing to bet that you would raise the roof.

Well, I want you to think about something. Every time you delay payment to a supplier you are denying that supplier their salary and even worse you are denying that supplier's employees their salaries. The knock on effect of delayed payments can get quite horrendous. Because you have not paid your supplier they are not able to pay their suppliers and so the impact of your negligence just goes on and on. You could even cause the closing down of the suppliers business.

The number of small business that have been forced out of business by unethical clients delaying payment for services rendered is quite shocking.

So just think about the harm that you are causing next time you consider delaying payment to a supplier.

Do the honest ethical thing and pay for the services you have received and watch the reputation of your business soar and the economy improve.

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Performance tip
Review your creditors policy. If you don't have one create one. Reward you creditors department staff for prompt payment and take swift action against those who delay payment.

Remember that the success of your business depends on reliable supportive suppliers.
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Article Source: http://www.articleset.com