Credit terms to customers

I am looking at offering either 14 or 28 days credit terms to day nurseries / creches. Is this a good idea? If so what safeguards would I need to put in place to ensure some security for getting paid?

 

[garyk]

Well most businesses wont even consider paying you until 30 days have elapsed so trying to enfore something other than the 'norm' you may find difficult anyway. As for 'enforcing' well apart from having clearly defined T's&C's chasing money Ima fraid is a headache for all SME businesses.

Good Luck

Gary

 

[Antonia @limeone.com]

To ensure payment you could try offering discounts for payment up front or also only accept order on the basis of a decent deposit ( needs to be in your Ts and Cs). If you do go down the credit route allow the businesses to gain credit with you slowly ie 7 days £50 on first order rising to 14 days after 3 orders etc.

 

[PI Guy]

[FONT=Verdana, Arial, Helvetica, sans-serif]You could also try factoring.

Regards

Jorge Salgado-Reyes

www.salgadoinvestigations.com
[email protected][/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]

Salgado Investigations provide a comprehensive enquiry service to Solicitors, Insurance Companies, the Retail Sector and to the general public.
[/FONT]

 

[Gillie]

Just state quite clearly when they order what your terms are and also put it on your invoices!! In my last employed position, the Company I worked for stated 7 days and they got it!

 

[Rob Holmes]

We work on 14 days on invoices although most pay upfront.

Generally I don't have issues with non-payment - although there are always a few people who try it on.

Rob

 

[Anara]

I used to manage a private day nursery and was in charge of ordering and have worked in several others.

It's the industry standard for private day nurseries to pay as they order as basically there aren't special rates for nurseries. Although there are specialist day nursery suppliers for equipment, toys etc they will pay the same £80 for a travel cot for example, as the customer on the high street in Mothercare.

Nurseries attached to schools and nurseries run by Sure Start/Local Authority would probably expect 30 days credit though. You may find that the big national chain nurseries ( Teddies, Leapfrog) will probably expect 30 days credit.

Hope this helps

Claire

 

Thanks for all the advice guys