Payment Terms

I am thinking of importing some handcrafts from South America. I did the market
research and talked to some retail stores that may carry my products. The
retailers liked my products and said they were interested in buying them. So, I
have potential clients!



However, most retailers told me that when they buy from a wholesale their first
order is C.O.D. or prepaid. But after the second order they get Net 30 days upon
credit approval.



Questions:

1) What is C.O.D.?

2) My suppliers ask for 50% in advance and 50% on delivery. The suppliers
are artisans and small cooperatives in South America, so that if they don't
receive a percentage in advance they don't have the money to buy the raw
materials. I want to work according to my clients needs, but I don't want (and I
can't take the risk of financing them.) I know that we importers are
insignificant, so I am afraid of losing clients if I don't offer payment terms
that match their needs. What should I do??



I would appreciate any insights and comments!



Thanks!

Carol

Bookmark this post --- Email this post