Ensure that their timing allows the business to maintain adequate cash resources
Holding back accounts payable can be a cheap means to improve a firm’s liquidity problems
Taking advantage of discounts offered by some creditors reduces costs and assist with cash flow
Motor vehicle dealers have a slow stock turnover, meaning that suppliers provide the vehicle before payment is due
As there are costs involved in providing and receiving credit, businesses may negotiate reduced prices and costs and benefits in using credit is determined in the control of payables
