Chat with us, powered by LiveChat

Tips to Better Manage Vendor Payments When Cash is Tight

Prioritize Critical Vendors

When money is tight, you need to carefully prioritize which vendors get paid first. Critical vendors that provide essential goods or services should be paid first so you can continue operations. You may need to temporarily pause payments to less essential vendors. Be transparent with vendors about your situation.

Negotiate Payment Plans

Contact key vendors to explain your financial situation and try to negotiate extended payment terms or installment plans so you can pay over a longer period. Offer to pay interest or provide other incentives. Maintaining positive vendor relationships is crucial.

- -

Take Advantage of Discounts

Ask vendors about prompt payment discounts or prepayment discounts you may qualify for by paying early or upfront. Even a few percentage points off can make a difference when cash reserves are low. Consider negotiating better rates if you commit to a certain volume.

Consider Alternate Financing

Explore financing options like business credit cards or short-term business loans that could help bridge the gap until business improves. Be cautious of high interest rates and read all terms carefully.

Review Contracts

Carefully review vendor contracts to understand payment terms and conditions, especially any clauses about late fees or penalties for late payments. See if any contracts can be renegotiated.

Keep Communicating

Keep vendors updated on your financial outlook, when they can expect to be paid, and any progress you’re making. Ongoing transparent communication is key to maintaining good relationships even during hardship. Vendors will appreciate your proactive efforts.

- -

Prioritizing payments to critical vendors, negotiating revised payment terms, and pursuing financing options can help small businesses better manage payments to vendors when money is tight. Maintaining positive vendor relationships through open communication is also key to weathering challenging financial periods. Reach out for assistance if you need additional help managing vendor payments or improving cash flow for your small business.

 

Get Debt Relief Today

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
Leo
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
Jason
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
Mary
$350,000 MCA Restructured Over 2 Years

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
Best Michigan Business Debt Counselors

Best Michigan Business Debt Counselors Navigating the choppy waters of…

Best Michigan Financial Advisors

Best Michigan Financial Advisors Choosing the Right Financial Advisor in…

Best Michigan Bankruptcy Lawyers

Best Michigan Bankruptcy Lawyers Navigating the choppy waters of bankruptcy…

Best Michigan Turnaround Management Firms

Best Michigan Turnaround Management Firms Introduction Navigating financial distress and…

Best Kansas Turnaround Management Firms

Best Kansas Turnaround Management Firms Introduction to Turnaround Management Firms…

Delancey Street simply gets it. You're talking to experts.
Steven Norris
Get Help Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Schedule Consultation