compiled by Kristina Valdez Payday Delay A new client is requesting net 90-day terms. How do you suggest they pay in a reasonable amount of time? QA Distributor Asks: I have a new client who is requesting net 90-day terms. It’s not a huge order (200 t-shirts), but that seems unusually long. My standard terms are prepaying on the first order for new clients. Any suggestions on how to get them to pay in a reasonable amount of time? I want the order, but I don’t want to float that money. No! If they want those kinds of terms, they are having cash flow problems. If you don’t give other clients 90 days, they shouldn’t get it. I remember the times when a 200-piece t-shirt order looked large; now, not so much. Reading it again also set off the alarm bells that at 90 days, if they still haven’t paid, they may ask for an extension to pay while you are chasing them for the money. Credit card up front, and it better go through. And make sure they don’t call the credit card company and cancel it a week later with whatever excuse they have. REBECCA FORD Owner Independent Distributor Cincinnati Do not give them 90-day terms! Big red flag here! You will get screwed by this client. If they can’t afford to pay for the order right away, then they shouldn’t be ordering anything. ALAN BAKER, MAS Owner Creative Marketing Concepts Latham, New York PPAI 209464, D1 This is a no fromme. I invoice with the proof every time and get no push back. I might be OK with a 30-day net for an established client, but 90 days is excessive, especially for a new client. KIM BULINSKY Owner Two Kids Promotional Products Palm Harbor, Florida PPAI 810361, D1 I require prepay from all clients— frommy microbusinesses, to my nonprofits, to my international corporations. I found long ago that the big guys who want net 30 terms usually pay net 60 or 90, and the little guys often just can’t come up with the money in 30 days either. Not to mention that, just because you’re huge and recognizable doesn’t mean you’re financially solvent; can you say MCI or Enron? RAMA BEERFAS, MAS Owner Lev Promotions Santee, California PPAI 218331, D4 I would just say “no.” One hundred percent payment upfront always. No terms unless it’s a government/state agency or school district. If it’s one of those, then only 30-45day net terms. You’re a small business; you’re not Bank of America. SANDRA SAPOL President and Owner Fully Promoted Encinitas Carlsbad, California PPAI 702575, D2 QA Distributor Asks: I got an email from a senior marketing manager of a big firm with nationwide branches, requesting for a credit application as they will be purchasing some high-end tech products for their event in August. They will be spending about $80-100k. I checked, and he and the company he works with look legit. As a precaution, what other things do I need to do to make sure this is not another scam? I already told him as a new client we will require a pre-payment for the first order. I do not see any situation that a legit company would line up a job at this cost Visual Generation / Shutterstock.com 12 | SEPTEMBER 2022 | INNOVATE
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