Large Companies Need to Learn How to Do Business With Small Business
Well, here we go again, as the United States flirts with a full-on recession we find large corporations cutting labor, cutting costs and paying their bills as slow as molasses. Ask any small business person, who has lived thru a business cycle and has corporate accounts what happens to his accounts receivables during recessionary downturns.
Yep, they become the bank for the large company, and corporations are never short on excuses for paying slowly either. It’s always something, “we need” this paperwork or that. Sometimes they just conveniently lose invoices and next thing you know you are being paid some 120-days in the rears, if you are lucky? You become a bank, covering their account payable liabilities.
CFOs specialize in squeezing out every little bit of profit, interest, and dollar in order to keep their shareholders happy, but this slow payment is outrageous and their dispassionate attitude is counter-productive to any real or perceived business relationship, that the small business thought they may have had. Indeed, you can tell the “built to last” companies by the way they handle their small business vendors during a recession.
One thing small businesses must realize is to not get behind on their collections, after all, if you pay any large corporation their bill past its due date, well, they will shut off your phone, power, TV, credit card, yellow page ad, or kick you out on the street if you do not pay your lease. Do not allow Corporate America to put the shaft to you, besides who caused the recession in the first place, I guarantee you that it was not the small business person.
“Lance Winslow” - Online Blog Content Service
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Great article. I own two small businesses with my wife and have faced these issues countless times. It’s usually in the form of a merchant service account company being “unable” to clear up an “irregularity” (which is always on their end) and, thus, our fund from our credit card terminal are put into a “holding account”. Luckily, I have no problem getting on the horn and putting my foot down, but it’s ridiculous that there’s even a need.