Payment Terms

Re: [spiers] Payment Terms

Hi John,

I am avoiding Net 30 for the simple reason that I have to pay 50% in advance
to the suppliers and I don't have cash to finance my clients. I am just
starting the business, so that I don't have enough cash available...I might
offer Net 30 when I grow bigger...but I prefer not to offer this option
right now.

Carol


----- Original Message -----
From:
To:
Sent: Monday, May 05, 2003 5:36 PM
Subject: Re: [spiers] Payment Terms


>
> In a message dated 5/5/03 2:04:47 PM, carolfreire@earthlink.net writes:
>
> <>
> ***
>
>
> First orders: C.O.D or prepay
>
> Reorders: credit cards or Net 30 days upon credit approval.
>
>
> Few competitors offer the option 60% onto Order and 40% onto Delivery.
Some
>
> give discount (3%) if invoice is paid after 10 days.
>
>
> My suppliers ask for 50% in advance and 50% on delivery, but some retail
>
> stores I talked to (potential clients) told me they won't be willing to do
>
> that. They prefer to pay by credit card, Net 30 or onto delivery.
>
> ***My advice would be First order credit card or prepay 50%... never
offer
> 3/10 net 30 becuase they will pay in 30 and take the 3% anyway, and you'll
> never get it back. As for COD, I will go to my grave arguing against
that,
> except in the instance where after haggling on the phone about payment,
the
> retailer says "I have the check here at teh store next to the cash
register"
> and I can make a note to the truck fdriver to that effect on the bill of
> lading.***
>
>
> I am thinking of accepting credit cards, 50% - 50% or prepaid. Will I be
>
> losing sales from the few potential clients who want the benefit of Net 30
>
> days?
>
>
> ***Yes, but we don't worry about losing a few sales at start... we worry
> about thriving on what biz there is... but let me ask, is there some
reason
> you are avoiding net 30 terms for your customers? ***
>
> John

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