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Payment Terms
How do you guys run your shops in terms of payment?
We are currently doing 100% COD but after today that’s going to change. Some client’s think COD means 1 year interest free.
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1 Reply
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I did a copy and paste on a set of generic "terms and conditions" and only give credit to carefully selected clients usually up to 21 days, that way I can 9 times out of 10 get the cash before I need to pay my suppliers who normally work on 28 days. I clearly state the goods remain property of my company until paid in full. In the past 18 months I have only had to chase 1 customer after the payment due date and that was a so called "mate"!!!
Late payment is based on interest paid cumulatively at a % above the banks base rate and is clearly stated. Fortunately my wife keeps me right when it comes to vetting credit customers and they tent not to be individuals.
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