IDEA: Pay vendors as fast as they wish IF they are also customers. (offset AP and AR invoices)

Pay preferential attention to your vendors who also buy from your firm (vendor/customer).   They may want to offset AR/ AP checks in order to reduce paperwork (reduce their customer payment by the dollar amount of their vendor sale, involving less cash in the transaction).  This is frowned upon by accountants and asset based lenders (banks) but small vendors like this because it helps their cash flow.  If they buy enough, pay them as quickly as they wish.  Make sure to let them know you appreciate the business and will show it through ease of payment. Watch their purchases as a customer versus your purchases from them as a vendor because they may ultimately may become, dollar-wise, a customer.

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