Survey

As a buyer for business, on the average of your top five suppliers, click on which one of the four choices below do you use to qualify those suppliers?

Evaluate supplier's financial statments and visit facilities.
Meet supplier's top executives and sales people in person.
Friendly with phone order clerk and read quality & on time delivery report.
None of the above.

Is Your Company Paying On-Time?

Date: 08/24/2017

Do you ever have a supplier tell you that your company is paying its bills late? Most suppliers will not tell the buyer unless the situation is flagrant, but late payments still reflect poorly on the buyer as well as the company. Your organization should honor the payment terms that are agreed upon. Check by asking your suppliers if they are getting paid on-time and ask your accounts payable people as well. If paying on-time is a problem, perhaps you should negotiate a longer time for payment. What do you think? Please give us you comments or suggestions.




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Comments:


Kelly - Dec 06 2017 12:00 AM

Unfortunately, no matter the payment term length some large companies will deliberately stretch payment out to keep the money in the bank longer. As buyers, we must find a way to smooth the flagrant situations over here and there. Quarter end and year end seem to be the worst times for not honoring payment terms. We are regularly pushed to negotiate discounted payment terms but rarely does AP get to take the discount because of corporate freezes on payments.

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