While attending a recent trade show, I met a "successful" gallery/frame shop owner, and we had lunch together and compared notes. He was definitely a bragadoccio-type personality, but had been in business for a long time and claimed his gross sales were "phenominal". As we talked over lunch, I began to silently question this guy's success. Finally, he managed to grate on the last bit of my nerves, and I could take no more. So I asked him the BIG QUESTION. The answer to which always separates the men from the boys. My question: "Do you pay your bills early to take advantage of your vendor discounts?" His answer: "**** no. It's not worth the time or hassle to keep up with that **** to save a measly 1-1/2 to 2 percent. I usually pay them in 40-50 days so as to not tie up my capital, and instead put it to good use for an extra 10-20 days." Right then and there I knew he wasn't nearly as smart or successful as he thought he was. The moral? It is ALWAYS advantageous to pay your bills in 10 to 20 days and receive the appropriate discounts from your vendors. THIS IS FREE MONEY FOLKS! Suppose this guy's vendors offer him terms of 2% 10 days / net 30. This means that if he pays in 10 days he will receive a 2% discount, and if it is not paid in 30 days, interest will be charged on the outstanding balance. So, in essence, what this guy has done by paying in, say, 45 days is this: He has "borrowed" money from his vendor for 15 days at probably 1-1/2% per month to not have to pay the bill on time. He has also forgone a discount of 2% of the amount of the invoice. But see, that discount is for a 1-month invoice and there are 12 months in a year - so by giving away that 2%, he is really giving away 24% over the course of the year! Add to that the 18% per year he is paying on the "borrowed" money, and this bro will be losing out on 42% per annum! One heck of a price to pay just to be able to act like a stud, doncha think?