Paying Suppliers

 How We Pay Our Suppliers

For those curious about the trade, here’s how we handle supplier payments:

Payment Terms

While not a payment method, terms dictate when we pay our bills. They’re harder to secure these days, but I have 30-45 day terms with most suppliers. These terms influence how I buy products, with the goal of selling them before the bill comes due. Sometimes it works out, sometimes it doesn’t.

But how do I actually send them money?

Payment Methods

1. Credit Card Up Front

   • Many suppliers accept credit cards without extra fees.
   • The IRS considers most cashback rewards non-taxable income, so I take advantage of that.
   • Since I personally guarantee my company’s credit, I also keep the rewards.

2. Mailing a Check

   • Yes, this is still a thing, and it’s how I pay most of my suppliers.
   • I use electronic banking through my local community bank.
   • Games Workshop recently announced they would no longer accept checks. For them, I wait until I’m past due or over my limit and then email them to charge a credit card on file.

3. Payment Portals

   • Almost every supplier has a portal now (looking at you, ACD).
   • Some link to credit cards, while others pull directly from my checking account.
   • Asmodee’s portal is my favorite—it allows scheduling payments on a credit card, meaning I can combine supplier terms with my credit card terms.

Managing Credit Cards

• I recently added a Capital One Spark Cash Plus, which has no preset spending limit.
• This helps spread out large purchases, preventing a single $40,000 bill from hitting right when sales tax and payroll are due. Instead, I make two $20,000 payments at different times of the month—far easier to manage.
• I use this card exclusively for two major vendors who account for half of my credit card expenses. It also simplifies QuickBooks entries with a single "Cost of Goods Sold" entry.

Previously, I relied on a Chase United credit card for travel rewards, but I don’t travel as much anymore. Watching my frequent flyer miles stack up into six figures, I decided it was time to switch things around.

Deal Breakers

Let’s talk about interrupting my flow—something I absolutely despise.

Take PG&E, for example. They’re the only bill (aside from taxes) that can’t be auto-paid. Every bill must be manually scheduled. It’s a failure point and a needless interruption.

The same logic applies to suppliers. If I can’t schedule a payment, my workflow is disrupted. Fortunately, most suppliers allow either scheduled payments or checks.

However, GTS Distribution is a headache. Paying by check often leads to delays, forcing many to make manual payments—something I consider unacceptable. Yet, I still use them, send my checks, and just hope they open their mail so the spice can flow.