Do you think organizations that consistently pay late are doing so intentionally?
I believe that most folks want to do the right thing and pay for the services they have received on time. Based on where the economy has been the last couple of years, I also think its conceivable that some folks may not on occasion have the money to pay on time – even if they want to.
In my example above, I am attempting to illustrate a scenario where services have been rendered and payment terms have been extended. Consulting services often falls into this category. Software sales and/or training are not as susceptible to late payments as the software or training class is often not delivered until full or partial payment is received.
I contend that organizations that consistently pay late have a company philosophy or directive to do so. Unfortunately, I also think this directive comes down from top management. We all know companies that are doing fine financially but have a reputation for and practice of paying late.
How should these folks be handled in your opinion? Let me know. I’d love to hear from you.