Only FOOLs delay payments
A not so shocking article in the Quint reveals:
"For every 1 Rupee the Govt. spends on procuring goods & services, it owes them
Rs 5". The report continues, "the delays may be indicative of liquidity
mismatches or solvency issues at the state-run companies".
I believe there is a bigger cause:
It's the ATTITUDE / CULTURE of: "Why to pay on time? Let 'vendors' remind us
multiple times; Let's demand more supplies in exchange for older
payments...etc." (Have experienced all these pain points working with companies
(Pvt and govt).
The funny think about this is that the ultimate FOOL is the company that delays
payments. Why?
- Top-notch suppliers don't bother dealing with problematic paymasters. You
attract the worst, never the best partners to work with you.
- Second run suppliers NOT just overcharge and adjust prices for bad debts/ loss
of interest/ loss of business rotation, but they are also the most likely to
start a ring of corruption within the organisation to favour faster payments.
They extract MORE than what you save.
- Large economies of COSTS are never possible (often, where the real margin is
(Walmart) if you don't pay with the precise regularity of a Swiss Cuckoo watch.
As a business owner, how is your payments health?
#dhandhekibaat
A not so shocking article in the Quint reveals:
"For every 1 Rupee the Govt. spends on procuring goods & services, it owes them
Rs 5". The report continues, "the delays may be indicative of liquidity
mismatches or solvency issues at the state-run companies".
I believe there is a bigger cause:
It's the ATTITUDE / CULTURE of: "Why to pay on time? Let 'vendors' remind us
multiple times; Let's demand more supplies in exchange for older
payments...etc." (Have experienced all these pain points working with companies
(Pvt and govt).
The funny think about this is that the ultimate FOOL is the company that delays
payments. Why?
- Top-notch suppliers don't bother dealing with problematic paymasters. You
attract the worst, never the best partners to work with you.
- Second run suppliers NOT just overcharge and adjust prices for bad debts/ loss
of interest/ loss of business rotation, but they are also the most likely to
start a ring of corruption within the organisation to favour faster payments.
They extract MORE than what you save.
- Large economies of COSTS are never possible (often, where the real margin is
(Walmart) if you don't pay with the precise regularity of a Swiss Cuckoo watch.
As a business owner, how is your payments health?
#dhandhekibaat
