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90 Day Terms

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allplastics
Posts: 17
Joined: Tue Feb 27, 2018 3:24 pm

90 Day Terms

Post by allplastics » Wed Aug 22, 2018 10:45 am

Just curious to see how everyone handles customers when they automatically switch their payment terms to 60 or 90 days. Please feel free to reach out to me at griselda@all-plastics.com.

Thank you :)

Team1MAPP
Posts: 7
Joined: Thu May 10, 2018 10:12 am

Re: 90 Day Terms

Post by Team1MAPP » Mon Sep 24, 2018 1:31 pm

It is always amazing to me when customers automatically change their "payment" terms. The key point is that you are issuing "credit" to your customer and should be telling them your "credit" terms. In reality our credit terms are Net 30 days but many of our customers want 45-60 days. We charge these customers for the additional interest and risk in all future quotes. When they want to push to 90 days we will push back hard. We do not want to be our customers bank and it begins to really pinch our cash flow. We have been pretty successful resisting this push to 90 days so far. Good Luck.

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