Billing Terms…

[kdw75]

We have always offered payment terms of 30 days for estabished customers, but it has always caused cash flow problems when we get several customers placing large orders that we outsource. Our big suppliers all tend to want cash when the order is placed or 50 percent down with a few exceptions. The smaller places will go 30 days.

I wondered how other shops handled this as we are thinking of requiring 50% down to cover our supplies and costs during production.

 

[SoggyWinter]

Same issues for us. I quit offering Net30 to most customers during the pandemic. The exceptions are government agencies that require net30 and a few corps that I don't want to upset.

 

[kdw75]

We do some work for Tyson foods and they were taking 60-90 days to pay. We started offering a small discount if they paid sooner and now they pay in 15. Some of these big places can move fast if they want to.

 

[tngcas]

We are a small print shop and we require 100% payment upfront before we start printing. Having said that, we are primarily short-runs so it's pretty rare that we would have a huge cash outlay but I personally hate having to ask customers for money so that's our policy. I'd rather be in a position to give a customer money back than the opposite.

 

[chrisio]

We have always been a cash on collection type of business which has always worked well. We occasionally sent invoices but only on the understanding that they were paid for on receipt. Last year I bought out another business who only ever invoiced and it's been a massive wake up call. Most pay on the day that the invoice is due but I seem to be forever chasing payment and my stress levels have went up massively. My outgoings have doubled with staff and stock etc but my receipts haven't really kept up due to large outstanding debt of due invoices.. I was just saying today I wish I could rewind the clock and go back to how it was. Less money but WAY less stress.

 

[pippip]

We've always been 30 days for regular customers, as usual some we have to chase a bit.
We'd mostly be small jobs but like yourself we've just had a flood of larger outsourced jobs which is causing a cashflow issue.

I know when I'm ordering stock or outsourced jobs I'd on occasion go with somewhere I get 30days over instant payment so I do wonder what clients I have do the same.

It's a real area where you have to leave out your personal relationship with the client to get the best option for you.

On occasion I use the "oh the accounts department have been on and need immediate payment on this invoice" .......... I'm basically a one man shop.

 

[TJPrinter]

I have some old customers that are 30 days and some that are 15 days. The rest are check or credit on pickup or payment prior to shipping. Except for a few good customers, large orders are now 50% down and if I’m sending the job out it’s full payment up front, just like I paid. I have no problem with a customer paying with a credit card, I’m happier paying the fee than having to waste time on trying to collect it.

I stick with the advice another printer gave me a few decades ago, “you’re not a bank and you’re not a warehouse, no payment, no new work started”.

I’m fortunate that I don’t have one or two large customers that could put me out of business if I lost the work by being a stickler for wanting to get paid for the work I’ve done.

 

[kdw75]

I am glad for all the feedback. Thank you all!