Customer credit terms and purchase orders

Any company needs to have a focused idea on the amount of credit it gives to customers

It is difficult for any business to be sustainable if they don’t sort out cash flow, especially if they’re not a large corporation with teams of people to rely on, to generate new credit lines or business opportunities.

Put simply there will be no business if you don’t sort out cash flow out. As a small company you’ll need money from customers to pay for your monthly existence.

One technique that I propose is that you don’t give any credit to any large non-corporate clients with existing contract (who are good payers), put simply if you can’t get supplies from the majority of your suppliers without cash up front,  this has to dictate how you do business with your customers.

Purchase orders

As a sales force part of the sales process is agreeing the payment terms and then most importantly getting  a purchase order. You can’t afford to renegotiate the margin away from each job because the client believes they can renegotiate on each finished project.

No purchase order no delivery.

The hardline according to philip, awaiting push back!

p.s if you placed the money that we’re asking for in terms of your own money from your own bank why would you give it away without guarantees, let me know what you think?