Payables: Get Vendor Terms Working for You
Tip 1: Renegotiate terms if needed
Most vendors adjust terms for good customers. Longer terms give you breathing room without damaging relationships. The key is to ask early.
Tip 2: Use payment schedules to stay consistent
Consistency builds trust. Vendors value predictability over speed. Stick to the schedule and they will work with you.
Tip 3: Take discounts when cash allows
A two percent discount improves profit instantly. If cash is strong, take advantage of it. Discounts are free money if managed correctly.
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