Why It´s Important To Pay Your Bills On Time
If you´re running a small or medium business, chances are you´re familiar with the expression “when it rains, it pours”.
Between inventory, production, and marketing costs, equipment hire, and employee salaries, having enough working capital to run your SME is the number one challenge for all entrepreneurs.
Now, throw in one or two bills, and it can feel near impossible to make ends meet. While getting an extension for some bills can often be negotiated, there are some bills which cannot be delayed.
Your relationships with vendors, suppliers, and financial institutions, are crucial to your operation. Your relationships are where trust, reputation, and reliability are built. Your relationships can also be the difference in whether you receive leniency in the form of a payment extension, for example.
While it´s easy to feel overwhelmed when bills come pouring in, below we look at four bill types that require attention and why:
1. Government Taxes
Let´s start with the big one first. When it comes to government taxes, as a small business owner, you don´t want to forget to pay this one. Not paying your taxes on time can result in heavy fines and penalties.
If you know in advance that you´re going to be late paying your taxes, request for a tax extension. It is better to buy yourself more time than get caught out with your taxes.
2. Your Suppliers and Vendors
You also want to keep your suppliers and vendors happy. After all, they are essential to the survival and operation of your business.
If you have proven yourself to be reliable in the past and have a good working relationship with your suppliers and vendors, then chances are you may be able to negotiate a payment plan or request an extension for a week or two.
Communication is key. Let your suppliers and vendors when they can expect payment and why you may not be able to pay on time.
After thinking about taxes and paying for inventory and manufacturing, it´s easy to overlook the day-to-day requirements of running a business such as your internet connection, heating, lights, and other utilities.
Once again, communication is key. Many service providers will be open to negotiating payment plans or granting an extension. Whatever you do, don´t neglect your service suppliers. Service suppliers can quite literally shut off the power to your business.
4. Your Employees
Last but certainly not least - always take care of your people and the people who work to make your company a success.
While, you as a business owner, may be able to forfeit your own salary, you can´t expect the same of your employees. They have a different level of investment.
Additionally, there are penalties which can be imposed upon you for not paying your employees’ wages, health care, and pension plans on time.
Paying Bills On Time, Every Time
As a business owner, it can feel like a juggling act to pay all your bills. Created to provide SME owners with the business loans they need when they need them, Ferratum Business provides fast, simple business loans of up to 50,000 GBP.
At Ferratum Business, we know time is of the essence and that every day and every cent counts. Conventional bank financing is often too complicated and slow to meet SME needs. Many banks promise money fast but applying for a loan can often mean completing pages of paperwork, producing your financial records, and then waiting for approval.
But at Ferratum Business, you can complete an online application any time of day, any day of the week. Applications take less than 5 minutes to complete, and businesses can secure the working capital they need within one day.
When it comes to paying bills on time, with Ferratum Business, you’ve got one thing less to worry about.