Try to preserve trust – even with tight working capital

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It’s the economy with tight working capital  or messy processes – you might say. Today there are many more instances of suppliers not able to keep up delivery promises and buyers not keeping up with timely payments. The problem is accentuated when both parties don’t keep each other informed. If you are a seller and are having working capital problems or trouble with inputs,its important to directly tell your customer and work out a solution, maybe you can buy from a competitor or let the customer buy from a competitor in case things are getting critical for your customers’ market. Sounds odd? But when you pro-actively look after your customer, you will gain trust and more business as things pick up.

If you are the buyer and you have agreed terms of payment, its really important for suppliers,particularly small suppliers to receive payments on time. If there is a delay,confusion or dispute at the receiving and inspection. Say so. If accounts payable is slow either because of your working capital problems or as a part of your financial strategy,tell the supplier.

Today with working capital being tight its important to retain the trust between buyers and sellers. Not communicating when things are not going as agreed erodes mutual trust and is really avoidable.

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