When you owe someone money (like a supplier or an associate who needs reimbursement), how do you approach payment?

Our reader poll today asks: When you owe someone money (like a supplier or an associate who needs reimbursement), how do you approach payment?

• I pay them immediately – no one should have to wait to get paid – 70%
• I pay them when I have the time – I have a lot of things going on – 21%
• I pay them at the end of the longest term possible – holding money makes money – 7%
• I pay them after they remind me several times – 2%

Pay promptly. The vast majority of you pay your suppliers/associates promptly (70%) and don’t slow down their payments. For the 9% of you holding onto your money for as long as possible or waiting to be reminded that you owe, reconsider your practices. Your delays can be causing cash flow issues for your suppliers or associates. Are the few dollars in incremental interest you’re earning worth the frustration you cause for business partners or associates? Is that the kind of reputation you want? Sure, there’s economic value in hanging onto that cash as long as you can but there’s a relationship and reputational cost you pay for doing so. Look at the relationship holistically and ask if holding onto that cash is in your overall best interests. Based on this poll, the vast majority of your peers see things differently.

– Mike Figliuolo at thoughtLEADERS, LLC

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These results were originally a SmartPulse poll in SmartBrief on Leadership which tracks feedback from more than 240,000 business leaders. Get smarter on leadership and sign up for the SmartBrief on Leadership e-newsletter.