{"id":2844,"date":"2010-02-22T21:22:00","date_gmt":"2010-02-22T21:22:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2010\/02\/22\/payment-terms-their-effect-on-your-vendors\/"},"modified":"2021-07-27T08:00:33","modified_gmt":"2021-07-27T12:00:33","slug":"payment-terms-their-effect-on-your-vendors","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/payment-terms-their-effect-on-your-vendors\/","title":{"rendered":"Payment Terms & Their Effect On Your Vendors"},"content":{"rendered":"

I hope that you have enjoyed the article \u201cRevisiting Vendor Payment Terms: It\u2019s Time!\u201c<\/p>\n

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I was inspired to write this article because I see a lot of procurement departments unilaterally changing their payment terms with their vendors. Some are doing this because they need to hold onto their cash longer or else they will become victims of the recession and become insolvent.<\/p>\n

However, other procurement departments are doing it because 60- or 90-day terms have become \u201cthe new normal.\u201d Net 30 is so 2007 to them. And if everyone else is beating up their vendors, they don\u2019t want to look like the laggards who still have net 30 terms.<\/p>\n

As expressed in the article<\/a>, extending payment terms without the desperate need to do so when many vendors are struggling financially can result in some self-inflicted wounds on your own organization. If you absolutely have to extend payment terms to survive, then do so. But be aware of how this impacts your vendors. Though many talk about the economy improving, the credit crisis is far from over. Consider these excerpts from an article entitled \u201cWhat To Do When The Bank Pulls Your Line of Credit\u201d in this month\u2019s issue of Entrepreneur Magazine:<\/p>\n