Impact of poor accounts payable on vendor trust

What if late payments set your supplier relationships on fire? But the real cause wasn’t lack of money, it was something far sneakier. And if you’re not careful, the same thing could be happening in your business right now. In fact, one of my clients had plenty of cash in the bank. They could have paid every invoice twice over. Yet their suppliers were frustrated.  Discounts for early payments are gone.  Urgent orders quietly pushed to the back of the line. When I dug in, the problem wasn’t money, it was chaos. - Invoices arrived through email, WhatsApp, even handwritten notes. - Approvals sat buried in inboxes for weeks. - Payments got delayed because “we’ll batch them later.” On the books, it looked fine - suppliers were eventually paid. But in reality, trust was quietly eroding. We rebuilt their accounts payable process: 📌 Centralized invoice intake 📌 Clear approval timelines 📌 Weekly, not “whenever,” payment runs Within two months, supplier calls changed. No more “When will you pay?” - instead, “We’ve got a new opportunity for you.” Accounts payable isn’t paperwork. It’s a trust contract with your suppliers and oxygen for growth. So, how strong is your AP process right now? #accountspayable  #cash  #finance 

I audited 17 failed small businesses last quarter. Less than 20% had perfect sales records. Rest 80% had chaotic accounts payable. Nothing kills a growing business faster than mismanaged vendor payments. While everyone obsesses over sales targets and marketing funnels, the real crisis builds silently in your AP department. Those payment terms you're stretching?  They're damaging vendor relationships that took years to build. The discount opportunities you're missing?  Your competitors are capturing them all. Business owners rarely see accounts payable as strategic. Until: - Your key supplier demands prepayment, right before your biggest client delivery - Your credit application gets rejected because of reported late payments - Your staff spends hours reconciling payments instead of driving growth Your business doesn't have an income problem. It has a payables problem. When accounts payable runs properly: - You know exactly how much cash you'll need next week, next month, next quarter - You leverage payment timing to maximize working capital - You build vendor trust that becomes invaluable during tough times - You capture every available discount that goes straight to your bottom line Most businesses won't fix this until they face a crisis. Will you? Follow Amit Kumar for more content around accounting and finance. #accountspayable  #finance  #accounting

"Vendor Payment Delay – A Silent Killer in Procurement Operations" Timely vendor payment is not just finance’s job — it directly affects procurement efficiency and vendor relationships. Here’s how late payments create a ripple effect: 🔹 1. Vendor Prioritization Shifts Late-paying buyers get lower priority. ✔ Delay in material dispatch, affecting your production timelines. 🔹 2. Loss of Negotiation Power Delayed payments damage trust. ✔ Forget discounts, better terms, or faster delivery. 🔹 3. Quality Gets Compromised Vendors may cut corners when cash flow suffers. ✔ Quality issues start showing up in supplies. 🔹 4. Supply Chain Disruption Payment delay in one item can halt entire production. ✔ Even small components cause big losses. 🔹 5. Market Reputation Hit Vendors discuss payment behavior in industry circles. ✔ Harder to develop new suppliers. 💡 Pro Tip: Procurement teams must closely coordinate with Finance to ensure payment cycles are respected — especially for critical vendors. 💬 Have you ever faced project delays due to vendor payment issues? 📌 #ProcurementTips #VendorManagement #PaymentTerms #PurchasingChallenges #SupplyChainRisks #CashFlowMatters #BuyerLearning