Late payments have really been affecting my relationships with suppliers. Just asked my main supplier for extended terms this month, which is getting awkward.
I can’t help but think there might be smarter ways to keep suppliers content while I wait for clients to settle their invoices.
Establish a line of credit for times like this. It allows you to pay suppliers while waiting on clients. The interest you pay is less than damaging relationships or facing bad terms. Communicate with suppliers about cash flow issues rather than making last-minute requests for extensions.
I pay them quick and move on to next job.
Small parts suppliers usually give me net 30 anyway. Bigger stuff I just pay cash upfront.
Stop waiting for clients to mess up your supplier relationships. I switched to requiring deposits that cover my material costs before any work starts.
If someone already owes you money, be honest with suppliers about timing instead of asking for extensions at the last minute. Most appreciate knowing what’s coming.
Also keep a small cash buffer when possible so you’re not always stuck between unpaid clients and supplier deadlines.
Been dealing with this same mess for years. Here’s what actually works for me:
Also started asking clients for deposits that cover my supplier costs upfront. Game changer. If they won’t pay a deposit, they probably won’t pay the final invoice either.
The awkward conversations get easier once you realize most suppliers deal with this constantly. They’d rather work with you on terms than lose your business completely.