Accounting for IGCSE & O level - Advanced Principles (Section 6 - No. 9)
What are some potential disadvantages of delaying payments to suppliers?
Loss of discounts.
Damage to supplier relationships.
Higher risk of not receiving goods.
Improved business's cashflow.
Explication
Delays could result in missed discounts, strained supplier relationships, and potentially affect the business's ability to obtain goods or services.