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Accounts payable is money owed by the business to suppliers or others (creditors) on an open account for goods and services purchased that business. Basically a "payable" is your business’ commitment to pay off its short-term debt to a creditor.

Should I borrow to cover overdue payables?
In many cases you should borrow to cover overdue payables. As a business, preserving a good standing with your creditors/suppliers is critical. Not only do you want to preserve business relationships, you want to preserve your business credit. All your good credit can go down the drain with just one bad payment history so it is important to pay on time.

How can I borrow to cover payables?
If you’re in poor standing with current creditors/suppliers and either not listed with D&B, or listed as a high risk, a principle of your company may need to personally guarantee any borrowing. This could still be worth it, even to cover accounts payable, if it means preserving your business credit.

Your business credit – Dun & Bradstreet
Dun & Bradstreet provides commercial credit reporting services on businesses worldwide. Many business lenders and suppliers will base your ability to "re-pay" on your Dun & Bradstreet rating. If your business is not listed with Dun & Bradstreet (D&B) or if D&B reports you as a high credit risk, securing financing or a new supply line can be difficult.


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