Cash flow problems affect all businesses at some point. You may be growing in numbers, or may have just moved to a larger space, and your business’ funds are tied up in non-liquid assets.

At some point, you may find that you won’t be able to pay your bills on time.

It’s imperative that if your business is having difficulties paying invoices that you address the problem head on, and take steps to resolve it immediately.

The first thing to do is to call the accounts payable departments of the vendor and communicate what your payment problem is as soon as possible. Work with the vendor to establish a payment plan or a new date for completion of payments and follow through on making these payments.

While unpleasant for both parties, most vendors will appreciate your candor and courtesy if you proactively address the problem. Further, you are more likely to avoid any "surprises" that you'll face if you ignore the problem, including being in collections or having your credit wrecked.

Work with the vendor to establish a payment plan or a new date for completion of payments. Most vendors will appreciate your candor and courtesy in confronting the problem.

By tackling the problem before it tackles you, you prove to your vendors that you’re worth doing business with in the future.

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