An entrepreneur friend and I were just talking about the heartbreak of getting stiffed by a client and it made me think about the payment process overall.
I know that many companies, especially large companies push suppliers, vendors and service providers for net 60 terms or longer and this is a savvy business strategy.
But, what about paying on time or earlier? That could also be a excellent business strategy. Think of the improved relationship and the trust established by being a good customer. Suppliers who like to do work with you will seek to meet your needs in different and potentially more beneficial ways. They’ll also be more apt to give you a referral when someone they know is in the market.
Maybe it’s not about working hard to negotiate longer terms maybe it is about working hard to be a great customer.