Pay on time, every time

Many small businesses struggle with delayed payments and cashflow management. I did at Motribe. So when I started up NicSocks I decided to try something different; I set out to pay any and all invoices on the day (and most often within the hour) that were sent to me.So far I've managed to do exactly that.Let me explain the problem. Small businesses don't have a war chest of cash that they have lying around like Apple or Google. If you receive your order and go about your business without paying the business they have to juggle other clients who owe them money and hustle ones who are close to paying. For you it's a simple afterthought, for the small business owner it's the difference between making salary payments this month or not.Great businesses will have this handled but most startup companies, small businesses or sole proprietors live hand to mouth with clients.Yesterday I went to my sock manufacturer to pick up an order and I asked my guy if he was busy. He replied that they were incredibly busy but that they always had time for my order and would always push me to the top of the pile.I am not their biggest client by a long stretch so I was curious why he would always push me to the top. His answer: Because you pay.Simple and effective. He offers me a service that I need, I accept the socks that they make and then I pay them.This is a very important lesson that I've learned over many years of dealing with corporates, advertising agencies, churches, banks and all sorts of big businesses. Making interest on a delayed payment is not a good way to make money, it's a great way to screw over the small business owner.Pay people on time, every time.