Treat your suppliers like you want to be treated

You get what you pay for.

Copying what other companies do to manage their cash flow, you might want to pay your suppliers as late as possible. You have pull and you can do it. But what you are really copying is creating the same hateful relationships these companies have with their suppliers.

Don’t bore me with the calculations and financial impact of paying later. Accountants work for you, not the other way around. Whatever gain you grab is always offset by losses in other areas. It’s the law of human relationships. Don’t expect people to jump over hoops when you don’t pay them properly. When you pay cheaply — guess what — you will get products and services cheaply. You might not see it but it’s there whether or not you are aware of it.

Thus, you must pay your suppliers on time, as agreed upon. You must treat people fairly and with professionalism. If not, then you have no business being in business. If you don’t have the money to pay people on time, that’s more of a reason you shouldn’t be in business.