The most
important component in any business relationship is the question of trust.
The
ultimate demonstration of trust and good faith is when a Supplier delivers
goods to a Customer on Credit terms.
It
therefore is incumbent on the Buyer that they acknowledge this act of trust and
observe the agreed payment terms.
With the
current pressures it is easy to understand the temptation of “pinching” a few
days extra credit but this type of behaviour soon begins to pall. Once a
Supplier feels that their Buyer is taking undue advantage the relationship is
damaged sometimes irreparably.
For any
relationship to be sustained there has to be mutual benefit. When a Buyer gains
a reputation for persistently crossing the line the merit in maintaining the
account is called into question.
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