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Late payment can also be symptomatic of poor relationships between
you and your suppliers. The way you manage your purchasing/sales
relationship is important to your profit margins. A commitment by
you to prompt payment can be a powerful aid to better buying; it
will certainly produce closer, more co-operative partnerships between
your firm and your suppliers.
Large corporations in particular enjoy considerable purchasing
power. That power carries responsibility. The flow of cash in the
economy begins with large organisations and should cascade, not
trickle, down the chain of suppliers.
Paying on agreed terms injects more money into UK industry; existing
suppliers are kept healthy; new firms are encouraged to compete
in the supply arena; buyers benefit from a wider range of supply
sources and the UK economy becomes more competitive in the world
market.
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