Taking Offline Payments From Customers?

[Supplybus]

Hi again all,

I now have progressed very far into the startup of my business.

1. I have 500 units of my product arriving in the next 3 weeks.
2. I have setup distribution channels in the northern counties of England
3. I have sold 120 to retailers in London and have around 35 end customers whom want to buy 1 each.
4. I am about to order a further 500 or 600 units.

I am now nearly at the stage where I will be invoicing my first 2 customers. What I need to know is what do I tell them with regards to payments i.e. I will invoice for their stock (payment need to be fullfiled before stock gets sent to their warehouse).

What are the standard terms distributors use to get payments? Do I just say they need to send a cheque for £XXX and then we deliver the product? Currently we are only doing "Offline" sales. The problem is we need the payment to clear asap to keep our stock control and cash flow in balance for the first 1000 units.

Any help would be fantastic.

rgds,

SB

 

[JamieM]

Hi,

Just send them a Pro Forma invoice for their order. I would give them an option to pay by BAC's as well, as this will be convenient and quicker for both of you.

 

[Supplybus]

Pro forma invoice - Got that. With regards to BAC's - how do I sent this up? I may phone my bank and ask them about Bac's payments. Do I just put the Bac's details on the Pro Forma? Do I email them a copy and/or post them a copy? It's this part of the business process I am in unknow territory and would like to do it correct first time around.

P.S. Thanks for the help

Nice product and webiste by-the-way.

 

[pickitpackit.co.uk]

My partner has a shop and has set up credit/debit card payments with streamline. if you join the federation of small businesses you can get free set up and reduced transaction fees also.

 

[DBY]

Hi again all,

I now have progressed very far into the startup of my business.

1. I have 500 units of my product arriving in the next 3 weeks.
2. I have setup distribution channels in the northern counties of England
3. I have sold 120 to retailers in London and have around 35 end customers whom want to buy 1 each.
4. I am about to order a further 500 or 600 units.

I am now nearly at the stage where I will be invoicing my first 2 customers. What I need to know is what do I tell them with regards to payments i.e. I will invoice for their stock (payment need to be fullfiled before stock gets sent to their warehouse).

What are the standard terms distributors use to get payments? Do I just say they need to send a cheque for £XXX and then we deliver the product? Currently we are only doing "Offline" sales. The problem is we need the payment to clear asap to keep our stock control and cash flow in balance for the first 1000 units.

Any help would be fantastic.

rgds,

SB

Hi Supplybus, congratulations, I hope everything works out all ok for you (seems to be!!). If you need anyhelp with international transport, shipping/forwarding then drop me a line. Myself and a partner have just lauched our own international shipping and logistics company with agents throughout the world.

Let me know if you need any help.
All the best.

Neil

 

[Supplybus]

Hi Neil,

Thank you for the offer, but we have all those bases covered.

Rgds,

SB

 

[JamieM]

Pro forma invoice - Got that. With regards to BAC's - how do I sent this up? I may phone my bank and ask them about Bac's payments. Do I just put the Bac's details on the Pro Forma? Do I email them a copy and/or post them a copy? It's this part of the business process I am in unknow territory and would like to do it correct first time around.

P.S. Thanks for the help

Nice product and webiste by-the-way.

Yes, just put the BAC's details on the pro forma. It is simply your sort code and account number and usually the name of your bank in case this is needed. BAC's payments generally take 3 working days.

I guess it depends how you produce your pro forma but email is generally best for sending, or some retailers still work by fax or post if necessary. Just ask what is best for them.

If you email me or PM your email address I can send you an example of one of ours if this is helpful?

Thanks for your comments, what is the product you are selling?

 

[Supplybus]

Hi Jaime,

I have sent you a PM. We are selling Camping equipment.

 

[Supplybus]

I have a related question. How do most customers like to be charged for their stock. i.e. we will email them the pro forma with the Bacs details and request the pay the proposed amount first and once this has cleared THEN the stock will be delivered to thier requested delivery address or would it be better to deliver the stock and request payment within 7 days?

 

[JamieM]

Just sent you an email.

Actually, many retailers will look for 30 days credit. We usually charge pro forma for a new customer and then ask them to apply for a credit account. Our standard terms are actually 14 days but we extend them quite often.

Of course, not all customers are acceptable credit risks so you will need to do some checking.

If your financial plans only allow you to offer a maximum of 7 days then I suggest you (confidently) go with that and review if you experience any resistance. You could in fact start out requesting Pro Forma only and see how you go.