Many businesses take their sweet time in paying their suppliers.
For them, the longer they pay, the better it is. If possible, they will try to delay for as long as possible, hoping against hope that you may actually forget that they owe you money.
Last year, we rented out a parking space in our building to one of the largest businesses in the Philippines. They owed us Php 11,435.94.
Now, this company has acquired around 50+ sites for its community malls. Ten of their malls have already started operations since 2017. They are one of the hottest companies in the PSE.
And yet, it took me ONE WHOLE YEAR of sending multiple emails, calls, legal threats etc. to finally get their accounting to pay us.
And for the meager amount of Php 11,435.94!!!
Compare this to a small parenting shop in New Manila, The Parenting Emporium.
They were very easy to talk to, and after talking to the co-owner, we then delivered our soft plushy rocking horses to them.
Imagine our surprise when during the time for payment, their billing actually took the initiative to call and text me to followup on the bank details so they can transfer the money to us.
They then texted me to follow up the next day on the bank details.
I have done business with many suppliers throughout the years, and many businesses are NOT like the Parenting Emporium. Their accounting is incompetent, the boss is not on top of operations, and they shy away with everything that’s related to collections.
Such effort for me is noteworthy. Given just this small example, it shows that The Parenting Emporium is a company of integrity, and I think many businesses should love transacting with them.
When you have a business, it is critical that you operate WITH INTEGRITY.
You always pay people whom you owe timely. You do not cheat them on the terms. And you try your best effort to act in good faith in all your transactions.
My parents were in the business of exporting coffee beans when I was young.
Some suppliers would jack up the prices when the current prices went higher than the future price. Other suppliers would refuse to sell their beans when the price is too low.
But my parents?
They sold the beans at the price to what was stated for the day, even though they bought the beans at a loss. Their clients saw them as a businessman that’s good as their word, and do not hesitate to buy from them, as they knew that my parents would sell them the beans at the agreed price, and can reliably supply even when the bean prices fell.
My parents are my hero, and I look up to them.
As I manage our small business, it is a source of pride for me to always fulfill my obligations in the timeliest ways possible.
I try my best to pay my people on time. Many businesses delay the salaries either because they’re assholes or because they cannot get the capital on time.
I pay my suppliers and don’t change the prices especially when our suppliers deliver the goods.
People know our credit is good, and we will pay the amount that was agreed with. I don’t try to shortchange my suppliers even after their work is done. This is because some companies in the Philippines re-negotiate the terms after the service is delivered, which is a very assholic thing to do.
Word of honor.
Hindi malabong kausap.
These are the tenents of owning a managing a business long term.
Especially given that the Philippines community is small, how you manage a business is as important as how much money you make.
You may be like this big shot real estate/retail/restaurateur company, but if you try to escape from paying your Lessor Php 11,435.94, one day the bricks will fall, and people will see what a whack you really are. How can a blue chip company operate in such a manner? Sure, blame your accounting, but I think it’s irresponsible for a business owner to let their Accounting take the fall, when they should be on top of their operations.
Everyone should be like The Parenting Emporium, who manage their business with a responsible heart. I know they’re not yet as big, but if you operate with integrity, I think it’s just a matter of time.
Really appreciate you being a good payer. I’m glad that despite the challenges of working in the Philippines, there’s still many businesses that are very lovely to work with.
Have a great week ahead!