When you operate your own business, a large portion of your time is likely spent trying to increase profits. There are all kinds of ways a business can go about this from increasing its customer base, cutting costs, and looking for ways for the company to be more efficient in general. One area you may want to look into is payment delays on your behalf. Did you know that if your payments are delayed to such things as suppliers, vendors, and even staff, it can end up costing your company money in the end?
Here we’ll look at what payment delays are, and how these three ways of avoiding them can actually benefit your company and its bottom line.
What are Payment Delays?
As its name suggests, payment delays refer to a payment that has been made or is in the process of being made, which incurs a delay. You could be making a payment to your staff, your supplier, vendor, a partner, or any other person. These types of delays are typically unexpected but can end up impacting your business in a very negative way.
If you are consistently late with your payments, you are going to start to build a reputation for yourself, and that reputation will be a negative one.
Build a Trustworthy Name for Yourself in the Business
For those companies who are notoriously late with payments, word starts to get around and it’s not a great reputation that you’ll be building. It doesn’t matter if you’re a brand new start-up or your business has been around for a while, it takes a long time to build a sound and trustworthy name for your brand and your products/services.Unfortunately, it only takes a few late payments to start chipping away at that solid image you worked so hard to achieve.
Because you likely depend on suppliers, vendors, and partners of some sort, you need to give them a reason to want to work with you. They have to know that they can trust you to pay your invoices on time, or else the odds of them forming deals with you are slim to none.
Build Trust with Your Employees and Staff
Your employees and staff are what keep the company running and afloat. You can have the absolute best products and services out there, but without the right staff on-board, those products and services will never reach the customer. What this means is that you need to treat your staff with respect and make them feel wanted and appreciated. Making sure they are paid on time, on a regular schedule, shows them that they can rely on you. This acts as an incentive and helps with employee retention.
While you may think that your employees are replaceable, the fact is that if you have a problem with retention, and you’re constantly having to hire new staff, then this also means you’re spending an awful lot of money searching and training of these new employees. If word gets out that you can’t be counted on to pay people’s wages on time, you’re also going to have a very hard time finding staff that want to work for you.
Avoid Incurring Late Fees and Charges
Another way avoiding payment delays can benefit your company is that it helps you avoid paying late fees and charges. Late payments can add up very quickly in fees, and suddenly by the end of the year, you are shelling out hundreds, if not thousands of dollars’ worth of these fees. These late payments will also hurt your credit rating, which affects who will lend you money and the rate at which they will lend it to you.
What Can You Do?
Of course, the simple solution is to just pay everything on time, but sometimes this can be easier said than done. This is why services such as AccessPay same day payments exist. They can help make sure that you never miss a payment again – and without having to pay a transaction fee. Think of it as your backup contingency plan.
Good Sound Business Sense
Avoiding payment delays is just good sound business sense, as it saves your company’s reputation and it saves money in the end.