Tag Archives: making payments
Stonehenge

How to Balance Your Cash Flow and Make Payments

Business-to-business companies typically give clients 30 days to pay for their products or services. These B2B companies also need to pay their vendors within the same timeframe. And it’s standard business practice to wait until the end of the 30 days before making a payment.

It’s like having an interest-free loan for 30 days as you keep cash longer in your bank account. However, late payments can cause the company’s cash flow to snowball out of control jeopardizing other areas of the business and its relationships with vendors. (There’s a difference between being nice by paying quickly and having the needed cash flow to stay in business.)

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