This article contains nothing new to most business person's reading it, but it is a stern reminder about the affect of delayed payment" - Founder

In the harsh economic climate we are in (world-wide), it is of major consequence when a business cannot rely on it's debtors, contractors, subscribers (internet) and customers to pay on time. This lack of reliance not only creates a financial (time-delayed) bubble flowing in mid-air between the business's trading capital portfolio and it's own creditors, but have a far-reaching (sometimes deadly detrimental) effect on a business concerning credibility.

When credibility comes into play, the name of the business is not now only being questioned by it's bankers/financiers, but in the biggest way, by it's own creditors. As a rolling effect, lack of payment or delay of payment then directly eventually influences the name/s of the financial managers as well as the name/s owners of the company. In essence, it can ruin, and has ruined thousands of companies, closing many of their doors.

You may argue Debt Control, Recovery, Lack of Financial Administration, inept invoicing and follow-up procedures, or a host of other blame-the-company points, but the principals regarding outstanding monies owed to any enterprise competing in business on ANY level, will always be the QUALITY of their debtors. This term is not widely used, but the "quality of a debtor" is essential in the path to sound end-of-month financial upkeep. No business, especially small and medium ventures, managed by small teams, can afford to wait on delayed payments due, especially when invoices exhibit clearly the words, "payment due on receipt" (lengthy payment term arrangements excluded).

All over the world, there is a sickness, a "rust" - that I believe, were created by bent laws protecting debtors, combined with people's warped notion of self-righteousness, when postponing payment of a debt for a service or product, while being in the position to do so.

Note: Consider (on the other side of the coin) the financial benefit to large companies gaining vast sums of compounded interest on their capital in a period as short as 24 hours, when they delay payment to their own creditors.

It is a 'time-with-money game' being played by power-players (fixed footing in the marketplace) who can sustain themselves while pushing the limits of others who cannot yet do so financially (new or small ventures). This eventually affects many businesses in a bad way.

I could extend this article to the size of a book, but the points I am pitching here, comes down to this. In business (and invariably as a private person in many cases), placing your own time-line before those of the creditors you owe, while being in a position to pay them, creates a snowball effect which down the line, not only damages your "standing" with them, but their standing with their creditors. The "down-line" becomes so long, that eventually, it has a negative impact on an entire economy.

So next time you see an invoice in front of you, and it is due - pay it immediately. It could mean the difference between life and death for a business.

Founder - Truth and Quality (@PaulvanderSchyff) @TruthandQuality