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Negotiate Special Terms to Stretch Cash Flow
– January 26, 2011
It is important to develop strong working relationships with your suppliers. They often have the ability to offer discounts or special terms for repayment. Here are some simple things that you might consider discussing with your suppliers:
- negotiate exclusive deals on buying
- see if they can provide long-term purchase arrangements
- and discuss programs where you can to return items that were unsold.
It is important to try and match your inventory turnover with your major payables. If you talk with your suppliers about your specific needs they are usually more than willing to help.
This is Profit Enhancement Idea #22 in Heard, McElroy & Vestal's 100 Ways: The Profit Enhancement Process series. The purpose of the series is to assist business owners and managers in cutting costs and increasing revenues by working smarter, not harder.
Walker Coburn
318.429.2109
wcoburn@hmvcpa.com
Walker is an Audit Manager in our Shreveport office. He received his Bachelor of Administration in Accounting and a Masters of Accountancy from Millsaps College in Jackson, MS. Prior to returning to his hometown of Shreveport and joining Heard, McElroy & Vestal, Walker worked for KPMG in Jackson and Memphis, and more recently as a financial reporting advisor for FedEx Corporate.
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