Strong Supplier Relationships Key to Getting Ahead in 2022, Specialists Report
As experts predict supply chain issues well into 2022, small businesses should make maintaining healthy supplier relationships a core business activity.
Joel Rosenthal, Co-founder and Executive Manager at Charter Capital, says the supply chain was strained before COVID-19, but conditions throughout 2020 and 2021 pushed it past its breaking point. As experts, such as Federal Reserve Chair Jerome H. Powell, have predicted “bottlenecks lasting well into next year,” business owners must make supplier relationships one of their top priorities, Rosenthal says.
“It’s easy to overlook how important supplier relationships are until something goes wrong,” Rosenthal explains. “But, it’s important to think of these connections as an investment in your business.”
Rosenthal describes supplier relationships as a way to “futureproof” a business and contends that, even in this digital age, the difference between running a business that gets what it needs and going without can rest on how well a business owner has connected with suppliers. Oftentimes, suppliers will prioritize and speed up deliveries for favored clients too.
“It used to be that great supplier relationships meant receiving better deals or getting better payment terms,” Rosenthal notes. “We still see that in some industries, but with the ongoing supply chain bottlenecks, it’s more about ensuring needs are met.”
Businesses do not have to be huge companies placing high-volume orders to get priority treatment, says Rosenthal. Opening the lines of communication, having fair expectations, and paying on time set a solid foundation. According to Rosenthal, invoice factoring can help too. By accelerating cash flow, businesses can ensure timely payments and scale up without needing additional credit from suppliers.
Those interested in learning more about invoice factoring are encouraged to request a free rate quote by calling 1-877-960-1818 or visiting CharterCapitalUSA.com.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit CharterCapitalUSA.com or call 1-877-960-1818.