Business 101: Always pay your Business Debts

As business owners, we have a responsibility to pay our debts. Whether its paying our bills, finalizing payment for a service provided, or paying our employees we are the ones who are accountable to ensure that all business expenses get paid in a timely manner.

Withholding payments from any person or company will only hurt your business in the long run. I will go into more detail at a later date but for now here are my reasons why:

1. You will lose trust in the person you are withholding payments from. Losing trust in employees and clients will rapidly push your business over the cliff - youll be committing corporate suicide.


2. It will be difficult to attain recurring business. Who wants to do business with someone who doesnt pay them? I sure dont.


3. If youre trying to play hardball to get something in return, well youre playing the wrong game. When it comes to withholding money from someone it will only make them livid and will not do any good for your business.


4. Referrals? Yeah right! Who would refer a business that doesnt pay?


5. It will hurt your reputation. If youre a company that has a reputable name, then you will quickly diminish all reputability when you make it tough on people to receive their payments " word will quickly spread.

If youre a business that doesnt pay your debts then rethink what youre doing and change this immediately - your business willimprove tenfold.