What would you do?

[gstk]

Just secured a fair size order from a big named company. We have had to do a lot of running around and they want it urgently. I know that they wouldnt have chosen us if they werent desperate. They want to pay by invoice (prob at least 30 days) and to be honest we dont have any credit accounts with suppliers. If i wanted to deal with them they wouldnt give us immediate credit. Should I stick to my guns and ask for payment and risk losing it or tow the line and give them credit.

In our business we can neither afford to give much credit nor afoord for someone not to pay.

Had we dealt with them a couple of times I would consider it but I know this will be a one off.

[bassqee]

ask for a deposit that would cover your costs.

[mrs maggot]

call up their accounts department - if its a head office rather than at the office where you are dealing be wary of getting any payment agreement other than their 30days std payment. and say you are enquiring about payment methods they have available, ask them if its possible for you to take a card payment from one of their company cards, and that although you cannot offer them a full 30 day credit service you are happy to offer them payment terms ie: 25% on placing the order with the balance 14 days from delivery, but you will require the order on your payment terms, as unfortunelty you do not have ability to carry a 30 day payment

[Justin]

This is always a tricky situation, I'd agree with the above comments.I used to have a customer who wanted 30 days credit but only paid at the end of the following month so often stretched to 60 days! They wanted everything for nothing and ordered very small numbers. Sometimes you just have to stand up to them and say no

[logobear]

The big companies turn slower than a supertanker ......
If you have no question about trusting them, my advice is to just fit in with their way of doing things.
If you rock the boat you will make it harder for them to use you as a supplier in the future.
Credit is the way larger businesses do their trade, if you want to grow, sometimes you just have to fit in with their systems.

[gstk]

we did an item for a very famous Whisky company a couple of years ago. Basically they had ordered a promotional product from China and when it arrived it was wrong. They searched the internet and found us. We had 72 hours to source and print and deliver the item. We did it by working into the night and I actually delivered the items in the dead of night to a freight company to ensure they were northbound in time. They were pleased with product and service and were going to come to us every time....... Never heard from them from that day..

Of course the other side it with this business is that because it is a bespoke item, once printed it is worthless. We have sent them one proof and photos of the second proof as time doesnt allow to send it for them to agree. BUT if you dont get payment up from the customer can always invent a fault or claim it isnt as they wanted and keep back some money. They are in the position of strength. If you have the money you are in the position of strength. (By the way there would be nothing wrong with the product)

[logobear]

I have never had a credit customer try to riggle out of payment with some bogus excuse - since 1987 - touch wood!
If you want to grow - go with the flow !

[Charlie_]

Its a hard one that, the trouble is once you print they are only any good to the people who commissioned them.

I would stick to my guns and want cash with order................

[Renniwano]

I guess it depends on whether you can afford to lose the order once printed.. maybe they will, maybe they won't but it's whether you can risk it..

If not and you don't want to ask for the full amount.. ask for a deposit that covers stock at least that way you're covered if it does go tits up.. and allow 30 day terms on the rest..

These days it would be lovely to trust everyone totally on 30 day terms.. but not everyone can afford to..

[gstk]

I guess it depends on whether you can afford to lose the order once printed.. maybe they will, maybe they won't but it's whether you can risk it..

If not and you don't want to ask for the full amount.. ask for a deposit that covers stock at least that way you're covered if it does go tits up.. and allow 30 day terms on the rest..

These days it would be lovely to trust everyone totally on 30 day terms.. but not everyone can afford to..

Thank everyone for your input. They asked for payemtn terms we said credit card or bank transfer and they said they will pay by card so disaster averted!!..