When a small company does something that you require, why wait to pay them for it - they cannot carry a big debt. They did what you asked and within the time you required, now why must they wait to be remunerated? After all the service was to help your brand, as much as it was to help keep their doors open.
Dealing with South African blue chip companies may sound glamorous and may give small companies something to smile about on their client list, but back at the office of the small business, the person paying the bills - usually the owner - is panicking.
Small business is all about having a small bank account, not too many staff and of course the ability to multitask. South Africa boasts more entrepreneurs than any other country and these small and medium enterprises contribute substantially to the economy by providing employment and of course necessary services to government, the public and corporates.
Small and medium businesses have realised that there are two key ingredients required to keeping their doors open. The first is continuous business and the second is this magical word called cash flow. This would seem a very simple formula. 'If I have a client, I do what they ask and I do it well then I should be paid for it and quickly, because if I am not paid for it, then my cash flow will be restricted.'
Small business will do the work but big business will take not 10, not 30, not even 60, but now 90 days to pay for something they are already reaping the benefits of, and we wonder why capitalism is such an issue the world over.
This is an attempt to get SA big business aware that there may be something it has overlooked and, if given a small consideration, may well relieve a lot of stress of their little, yet very skilled suppliers and in turn small and medium enterprise as a whole.
