Timing of Payments for Small Businesses
April 25, 2019
Timing of Payments for Small Businesses
Small businesses are often surviving month to month, especially in their early years. They can’t afford to have a payment delayed, or go through a lengthy litigation process to collect on a contract. They are also often in a position where they are trying to build relationships with bigger clients.
Big corporations on the other hand often play fast and loose with timing of payments because they know that the small business generally cannot resort to legal recourse. Big companies also have in-house legal counsel, or lawyers on retainer, in case there is a dispute.
We should not be allowing big corporations to force small businesses to act as unofficial credit lines because of a difference in bargaining power. In some cases, it is literally the difference between staying in business and going out of business for the small shop.
We need to ensure that all businesses are playing fair so that our small business community can thrive.
- Yang2020.com
