Re: FN-FORUM: Credit to resellers

date posted 7th March 2008 13:09

It is criminal using you as a free lending source instead of an overdraft.
However, it seems to be a fact of life with some resellers.

We print and duplicate CDs and DVDs, fortunately about 50% of the business
is cash with order (cards, checks and unmarked, low denomination notes).
However, we do deal with several companies who re-sell our service who
always use the "we'll pay you when we get paid" line when their 30 days is
up.

Each time I explain we are a small business and not a lending bank and that
we do incur considerable costs to fulfil their jobs. I explain that our
terms are strictly 30 days from date of invoice and that late payments may
be subject to interest and in all quotes and invoices I put these terms in
bold to them.

But at the end of the day we just have to realise and take into account
these payment policies and work it into the cashflow. We do at least know
that they will pay in a certain time. One I just gave up on and extended his
credit to 60 days, but a day over he gets phoned mercilessly.


On 7/3/08 14:05, "Darren Moore" [EMAIL REMOVED] wrote:

>
> Hi.
>
> Does anyone resell/outsource their services to other companies who
> deal with customers?
>
> I'm currently doing work for a design house who give their customers
> 30 days credit after the invoice has been sent. These design houses
> only want to pay me when their customer pays them which is generally
> over 30 days when I've passed my work to them.
>
> Just wondering how other people deal with this and if you have any input?