Found a simple fix for late vendor payments in 2 weeks

Been dealing with vendors delaying shipments for 30 days plus. Finally tried net 15 payment terms with a 2% discount if they pay invoices within 10 days. Has anyone else used early payment discounts to speed up their supply chain?

2 comments

2 Comments

elliot_grant3826d ago

Haha I tried that once. Ended up paying a vendor 2% early discount and they still shipped two weeks late. Guess they just pocketed my "speed up" money as a bonus. Made me realize some vendors are just slow no matter what you offer. Net 15 works but only if they actually care about their cash flow. I switched to paying with a credit card that gives me 2% cash back instead. That way if they're late I'm still winning.

jackson.jenny26d ago

@elliot_grant38 I totally get what you mean. Some vendors are just built slow no matter what deal you throw at them. What actually worked for me was sending a quick reminder email 5 days before the payment due date with the invoice attached again. I also stopped offering early payment discounts and instead started asking for a delivery date confirmation before I even place the order. That way I know if they can commit before I pay anything. Once I had a vendor promise me a 10 day turnaround and I put it in the order notes. When they slipped I showed them their own note and they made it right.