On Cash Payment Management
The objective in managing cash payments is to delay them as long as possible. Managing your cash payments can spell the difference between the success and failure of your business. When you understand to measure and manage this, you will have a sense of order and well being that extends to yourself, not only your business. Below are some tips that you can apply:
- Pay on the due date, not earlier. If a payment is due on 30 days, don’t pay it in 15 days.
- Make a track record with your suppliers so that you could request delays in payments in the future, if your business needs it, without them losing their trust in you.
- Use bank checks instead of cash on the due date unless supplier requires otherwise.
- Negotiate for flexible payment terms. Sometimes, it is better to pay a little extra on price if you could stretch your payment terms as long as possible.