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What all factors we have to consider,while making payment to creditors ?

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Question added by Muhammed Nisar , Assistant Manager - Finance and Accounts , YouGotaGift
Date Posted: 2014/04/12
Muhammad Suleman
by Muhammad Suleman , Senior Accountant , Danube Super Markets (BinDawood Group)

according to my point of view, you should consider your liquidity position. If you have surplus cash than you can pay to your creditro. If you pay them late then next time they will charge you high prices or may not dilever their order to you. 

If they are giving any discount to you then you can think about for taking the discount or not. It is a method of geting early payments from creditors. If you pay them late then you can use this cash in your own business and earn profit on it. It is a cheap source of finance.

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