Process: Insurance for Rough Times

Are you taking all the 2/10 net 30 discounts on AP? Why not? That equates to 36% interest in a year! Plus as a bonus if you do get into financial trouble or cash flows slow down temporarily or seasonally, call them right away and let them know. Better to keep them informed right away. Call them. Call them. Call them. Was that clear enough? Usually they will carry you a little longer maybe 45+ days. How many times, when you have heard about a friend who was in a rough spot, have you not responded by saying, “why didn’t you call me? I could have helped you.” Think this way when dealing with suppliers and customers. DON’T assume that they cannot or will not help. They are your business partners. They need you like you need them. You help out your customers, they will do the same for you. BUT, you have to let them know, so pick up the phone and call them. Of course you need to balance this carefully if you need to do it.  Do it now and don’t wait.

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