So often in business it’s the less glamorous stuff that matters the most. The form filling, the legal agreements, insurances, policy documents and the endless rest of it.
Any business owner though will tell you that the fundamental thing is quite simple and obvious – getting paid.
It’s something we have a bit of a bee in our bonnet about here at Be Bold. Not because it’s been a systemic (or even particularly regular) problem for us because we work with great companies, but because we think being quick to settle up is one of the things all firms should make a point of being good at. Think of it as another PR win.
Big firms dealing with smaller firms have a responsibility not to mess them around. Smaller businesses can make all the difference to each other if they don’t faff about with making payment.
Of course cash flow can be an issue, but where it’s not, why not just consider paying up as quickly as you can? Given the times we are in, it could make the entire difference to a small supplier whether they can keep going into next month.
It’s something we’ve long (as in more than a decade) made a point of. Do we always get it right? No. Occasionally something slips through the cracks or, if it’s a large bill, prudence says we have to wait to get paid before we can pass it on, but wherever it’s possible it’s our aim to pay up smartly.
We signed up a couple of years ago. You have to be verified by some of your own suppliers who are willing to agree that you don’t hang about settling up with them, but once you clear that hurdle, you’re in and can display the member logo if you wish.
We think it’s something that all medium and large companies should certainly be part of, because it demonstrates a willingness to be a good corporate citizen and gives confidence to smaller firms looking to do business with them. Frankly, as a large and highly liquid business you should have little or no reason not to do it.
For smaller businesses it’s almost more important. Their supply chain is often going to be other small companies or sole traders and they definitely benefit from having confidence that you have a solid policy (and evidence) of being a good payer in place.
If the Prompt Payment Code has so far been under your radar why not take a look today. Once you’re admitted, don’t forget to make a virtue of it because you’ll have earned it.