Paying Your (Small Business) Bills

A certain business based in North Carolina is facing tough times like everyone else. Its forklifts, once commanding strong prices in good times, haven’t seen demand decrease — just customers’ ability to pay on time. Its cash-flow strategy? Milk the mom-and-pop customers for what they have, and tighten the trade terms (the period during which the company will extend credit while customers get their own cash-flow situation together).

But, for the most part, small businesses report, suppliers aren’t putting the squeeze on their customers — everyone needs the business they can get. Usually, the vendors are putting the squeeze on the suppliers to come in at a lower price point.

Be that as it may, here’s how to manage a bullying vendor who’s pressuring you to pay now…