Thought Leadership – Sarah Whale

Why Clear Processes for Paying Suppliers Are Essential for Business Success

Cash flow is the lifeblood of any business, yet too many big and small companies struggle with late payments. Suppliers suffer, supply chains break down, and trust across the business world takes a hit.

Late payments have real consequences for business owners, employees, and the economy as a whole. For many small business owners, the stress of chasing unpaid invoices and worrying about payroll greatly affects their mental health. 61% of small business owners say financial worries, especially from late payments, affect their mental well-being.

Small businesses don’t just feel the effects; even larger companies feel the pinch when their key suppliers can’t operate properly.

So, what can be done? Most businesses set out to act responsibly, but the priority of getting timely payments made is often not high enough on the board agenda. The solution is simple: set up solid financial processes to make paying suppliers on time the norm. Clear payment terms, automated invoicing, and proper onboarding for suppliers are all key. Track your metrics and continuously improve your payment performance.

Companies like Amey, BUPA, and Aviva have built strong reputations by paying suppliers fairly and promptly, creating lasting partnerships and steady growth. On the flip side, businesses that delay payments risk unhappy suppliers, higher costs, and a damaged reputation.

Paying suppliers on time isn’t just the right thing to do; it’s smart business. When companies make sure everyone is on the same page about payment deadlines, they strengthen relationships and keep their supply chains running smoothly. It’s time for business leaders to make fair payment practices a priority and lead by example.

Written by Sarah Whale, Managing Director & Impact Business Advisor at Profit Impact