I can't tell you how many businesses I have seen that boosted their cash flow, temporarily, by dragging out payments to vendors. This is a dangerous practice on a number of fronts.
One of the dangers is it can take some of the pressure off you to actually address the underlying cash flow problem. The first line of attack needs to be focused on what’s causing cash flow to be so tight in the first place.
Alarms Should be Going Off
The fact that you have to pay your bills late needs to be like a fire alarm going off in your office.
If you are at point of not being able to pay your bills on time, stop and take the time to find out why.
Is it an accounts receivable problem, an inventory problem, a revenue or expense problem, or something else?
Find the cause of the problem.
This will put your attention on the area of your business that is leaking the cash.
Then you can put your time and energy into plugging that leak.