In many cases businesses are taking more time to pay their own bills. We have all heard about consumers and their increasing lag time on paying bills but what we don’t hear about is businesses and their ability to meet their obligations.
Below, we have a video about how a business can respectfully work with another business to get paid for their products and services.
A business not paying another business is a perfect example of an economic chain reaction and what could be a circle of people not paying their bills. One very important bill that we know a business needs to pay on time is their payroll. Payroll as well you know is what all employees look forward to on a regular basis. It’s also what allows consumers to pay their own bills; which in turn, helps a business make payroll. See where we’re going with this?
If you’re a business that cannot meet that obligation with cash flow, you may need to borrow that money and of course, pay it back when you do have cash flow. Many other expenses come with running a business that directly affect the employee such as health insurance, safe working conditions, and many others items an employer needs to pay for to take care of their staff. As business owners we know this. But does everyone appreciate this? What many either don’t understand or choose not to is that without cash flow, a business could fold and leave all their staff members without a job.
As we head towards the end of the year and another holiday season, it’s important to set some new goals as business owners. We need to somehow educate our customers that we rely on prompt payments to keep our employees happy; that we will be happy to work out arrangements to spread out payments if they need to; and that we truly appreciate them as a customer and will work with them to resolve any outstanding debt issues.
Check out our video on B2B Collections.