Reply by Moneyman/TX on 2/1/13 2:55pm
Msg #453474
Great article! Thanks for posting.
I found this paragraph very interesting, especially as it pertains to our industry.
From page 2 of the article:
"Heald applauds Marion’s gumption. “Don’t accept the customer’s terms as a foregone conclusion,” she advises. “When companies embark on payment-term pushback programs, they’re expecting resistance. Sometimes, if the supplier complains, they’ll just put [it] back on the old program. I’ve seen this from huge, huge corporations. They don’t have the desire to manage negotiations. They’re just hoping 80% or so of their suppliers will accept it without complaint.”
When I first started, I billed everyone Net 15 because when the loan funds payments are made. I have moved that to Net 15 and Net 30, depending upon the type of loan and company I am dealing with. Over the years, when I had some SS companies want to push payment times to Net 45, or even Net 60, I told them that my quote was based upon (Net 15 or Net 30, whichever it was for them) and that I would have to increase my fees for longer payment times. 98+% of them, decided to keep it at Net 30 max. They did not want to pay the extra money to hold on to my money for an extra 2+ weeks.
I also found the information regarding supply-chain-financing agreement (Suggestion #7 on page 2) interesting. One thing is for sure, slow/non-paying companies would be out of business in a very short period of time if NSA's utilized such a payment system. jmo
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