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Strong Supplier Relationships Key to Getting Ahead in 2022, Specialists Report

Marc Brousseau by Marc Brousseau
January 17, 2022
in Financial
A A
Strong Supplier Relationships Key to Getting Ahead in 2022, Specialists Report
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Leading invoice funding company Charter Capital urges business owners to focus on their supplier relationships going into 2022. While good rapport with suppliers has always been important, the slow supply chain recovery means key relationships can be a defining factor in a business’s success moving into the new year. The company’s recent publication, “How Factoring Can Help You Maintain Healthy Relationships with Your Suppliers,” outlines the business case and provides actionable tips for strengthening supplier bonds. The complete piece is available at CharterCapitalUSA.com.

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.

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“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.

Marc Brousseau

Marc Brousseau

Deputy Editor

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