Every bill paid late, damages a business’ reputation, can legally attract late payment fees and more importantly, forgo the opportunity to save up to 5-10% in early payment discounts.
Suppliers will inevitably ‘price in’ the cost of delay.
There is no such thing as a free lunch!
A late payment increases the operating cost of the supplier (interest cost, debt collection cost, etc) which is GUARANTEED to be passed down to the late paying customer.
Financially, late payers are losing out on profitability by forgoing the ability to save through early payment discounts to the tune of 5-10%.
Paying you bills on-time (or earlier with discounts) is good for business and good for your reputation.
You will always have to pay your bills in the end so why risk losing a good reputation over a few days or weeks and forgo the opportunity to ask for early payment discounts?
Paying your bills on time (or earlier) is easy with the right choice of software and apps.
By using softwares such as Xero, Esker when combined with Parakeet means you can now easily automate the offering of early payment discounts, automate BPAY and EFT payments to suppliers which can save you time, boost your profit and contribute to your reputation / goodwill bank.
Who doesn’t want to create a reservoir of goodwill along with earning a reputation that sets you apart from your peers?
Paying on time (or earlier) makes sense financially & helps build a bullet proof reputation for your business.