3 Simple Steps

It's no surprise that many small businesses are struggling through these tough economic times. So much so that many are having a tough time even paying bills. If you’re having a tough time paying your vendors, try following these 3 simple steps.

1) Communicate - Let your vendors know what you’re going through. Don't hide from them and hope things will get better. Let them know you want to pay what you owe but you're going through some tough times. Honesty is always the best policy.

2) Develop a plan - work out a plan with your vendor that is a win win for both of you. Perhaps it’s paying COD for now and adding a portion of the past due amount each week. This way you get the products or services you need now and the vendor gets paid in a timely manner without you going in debt further.

3) Follow through - Whatever plan you agree on, make sure you follow through with it. This will help develop even deeper trust between you and the vendor which will help in the long run.

How does this save me money you ask? By doing this you may avoid some finance fees that many companies have on past due balances. You can negotiate that when you develop a plan. You will also save on collection fees. It will also keep you from going into collections or being sued which will ruin your credit rating and cost you money.