3 ms·

They have their routines for paying bills and services, it would be very inconvenient to pay ad hoc. And I’ve never even heard of next day payment, except maybe

• chrisseaton 5y ago
  > They have their routines for paying bills and services, it would be very inconvenient to pay ad hoc. But why? A bank transfer is fast and trivial to do. Where's the inconvenience? I presume the actual administration work of checking they had money in a budget to pay for the work happened when the work was contracted not at the end.
  • xnyan 5y ago
    >But why? Two reasons. The most important reason is if you keep the money for 30/60/90 days, it's like a interest-free loan for the company. The stronger your position is, the longer you can hold on to the money (see walmart). It's how virtually everyone does it. Second reason, "A bank transfer is fast and trivial to do" - I'm guessing you've never done work for or been around a large enterprise or you would not be saying that. Usually it's something like "The spending committee has to approve, then Richard in accounts receivable is the only one who can sign off on the check and he's on vacation til June/"
    • Grustaf 5y ago
      No, it’s more about efficiency. If they would pay bills ad hoc they would have to do it every day, instead of settling everything once a month. Just like most people don’t go to the grocery store for individual items, they go once a week or so.