Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsChecklist for Managing Suppliers & Payments to Suppliers3. Managing RelationshipsActionMeetregularlyDescriptionMeet regularly with your main suppliers to discuss the progressof your business (they are often able to assist with increasedcredit terms, new product etc.)Adhere topaymenttermsEnsure that agreed payment terms are adhered to.Have anon-paymentprocessCommunicateBe a goodcustomerEnsure that there are processes in place for when suppliersare not paid on time i.e. they can contact someone to discusson the situation.Communicate with suppliers when payment needs to bedelayed and, if possible, set up an agreed payment arrangement,and make sure you stick to it. Summarise this agreement inwriting and ensure that the senior fi nance person (or owneretc.) receives a copy.To maintain good relationship with key suppliers, be seen asa good, reliable customer.56Chapter 2-5 p22-65 Eng.indd 568/15/11 5:01:58 PM