February 3, 2010 
This entry was posted on Wednesday, February 3rd, 2010 at 8:41 pm and is filed under Accounting, Accounts Payable. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Establishing a solid credit standing can be very tough. However, it is still possible with proper management. Accounts payable payment terms are typically mutually agreed upon by the vendor and the purchaser. These are designed for the benefit of both parties – the purchaser of deferred payment and the supplier of timely payment.
Accounts payable payment terms can be negotiated. This negotiation can further establish a good relationship between the buyer and the supplier. For instance, you may increase payment terms by using electronic funds transfer instead of check issuance. It is also wise to take payment discounts wherein suppliers offer certain reduction on price if you pay within their specified period of time, say 10 days. This will bring back a portion to your working capital