On Treating Vendors Fairly

Net 30. Everyone has seen those words on an invoice. And we all know what it means. Credit has been extended for up to 30 days to allow us to arrange to pay the bill. All too often, the practice among businesses is to stretch out the terms. Many companies purposely extend to 60, 90 and even longer. They are, in effect, using their vendors to finance their own operations. In most cases it forces the vendors to dip into expensive lines of credit to pay for the labor or materials they used to supply the product. This is patently unfair – to everyone. It forces prices up for all of us. It reduces profits and therefore cheats employees out of raises and bonuses. Repeat this: Starting with me, vendor relations will be honest and respectful. For more tips and information, visit www.swimstartingwithme.com.