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Secure Visa Payment
It’s not a secret that the payment delays are in reality a supplementary discount for your customer. What are the points you have to consider for the fixing of your payment terms?
In every case you have to follow the legal obligations like in France where the payment delays are fixed by law on a maximum term of 60 Days after delivery.
Competitors, Business Fields and the wishes of the customers are also points that the suppliers are considering.
But there is a concept which is not always token under consideration it’s the cash cycle of the customer
In the Gastronomy Era where the supplier’s deliver several times a week and where the customers pay immediately a payment term about 60 days is without sense and is a free financing of the customer.
In the fashion Business where the goods are sold 4 to 6 month after delivery the shop owners will have difficulties to pay within 30 days or they will need a short term credit from their Bank in a period where the Banks are very unadventurous for this kind of financing.
The Fashion supplier has to be creative and he has to help his customer for the financing of the deliveries (value dates, payment plans) adapted to the cash cycle of the retailer.
A supplier who doesn’t take under consideration the cash cycle of his customers will face payment delays, unpaid invoices and debt collection files.