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What advantage do you gain by always paying them late? Just hanging on to the money a little longer so you can earn a little more interest on it or something?
by RandallBrown 13y ago
What advantage do you gain by always paying them late? Just hanging on to the money a little longer so you can earn a little more interest on it or something?
I've worked with a company that always pays me late. I've told others to be wary about working with them because of it.
I don't see how this is a good thing since it makes you seem extremely unprofessional.
- nwhitehead 13y agoIt's almost a tautology, but by paying late you keep your cash available for other uses until you pay. Cash flow can be the limiting factor for many (most?) businesses. Another way of looking at it is that by paying late you pass some risk from yourself to the recipient. Interest rates quantify both the time value of money and the risks associated with payment in the future. Paying late without penalty is an interest free loan.