- Joined
- Oct 11, 2020
- Messages
- 66
Rep Bank
$485
$485
User Power: 189%
I run a B2B ecommerce / wholesale business. Our customers are small retailers (not chains, only independent stores).
Currently all our customers pay upfront when they place an order. We have 200-250 customers and every few months we have a customer asking for credit terms. This seems to be a minority of customers who need credit but I'm unsure if our credit terms are holding us back from growth. It's unusual for a wholesaler not to offer retailers credit.
Our competitors offer 30 day payment terms and they otherwise have a similar offering to ours. Retailers might choose the competitor because of the credit. We could also potentially sell more.
On the other hand I can't be bothered to chase up payment for 80 orders per month. It is a lot less hassle getting paid upfront. We do currently have enough cash to offer credit but in the long term it would have a negative effect on cash flow. Sales have been steady for 2 years and we don't have any customers getting really annoyed about our payment terms (or at least they don't tell us).
So what do you think we should do? Do you offer your business customers credit? Have you had problems with late payments?
Currently all our customers pay upfront when they place an order. We have 200-250 customers and every few months we have a customer asking for credit terms. This seems to be a minority of customers who need credit but I'm unsure if our credit terms are holding us back from growth. It's unusual for a wholesaler not to offer retailers credit.
Our competitors offer 30 day payment terms and they otherwise have a similar offering to ours. Retailers might choose the competitor because of the credit. We could also potentially sell more.
On the other hand I can't be bothered to chase up payment for 80 orders per month. It is a lot less hassle getting paid upfront. We do currently have enough cash to offer credit but in the long term it would have a negative effect on cash flow. Sales have been steady for 2 years and we don't have any customers getting really annoyed about our payment terms (or at least they don't tell us).
So what do you think we should do? Do you offer your business customers credit? Have you had problems with late payments?
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
