credit terms

[eastlmark]

notice how many businesses lately have changed their credit terms from payment at end of month to payment on the, eg. 20th of month instead. A major pain in the backside for small businesses who only open their cheque book on one day set aside for paying. Just got a letter from Qualtex advising we will be “on stop” if payment not recieved by the 20th.

[kwatt]

Re: credit terms

It’s no surprise Mark and, one that almost everyone is facing but it is especially acute problem in retailing.

Essentially, most accounts were insured if they went above a certain level of turnover and this has been the case now for a good many years. If the insurance is removed, refused or reduced then the credit limit on offer will usually follow suit. There are a number of reasons for this but I doubt that they’d affect most repairers who tend to operate on smaller accounts, as in, a lower level of credit.

It will almost certainly affect you if you buy machines in any sort of volume from the usual suppliers.

Where it’s smaller debts that are uninsured the credit control appears to be being tightened up a lot from most suppliers.

I don’t think that’s a real reflection on the repairers being any more of a risk than they were a year ago but more a reflection on the suppliers themselves. I would imagine that, like anyone running substantial accounts, that their credit limits have been reduced or removed thus forcing them to tighten their own credit controls.

TBH, I reckon it’s just the way of things in the current climate and more of a “trickle down” effect than anything sinister.

K.

[electrofix]

Re: credit terms

Qualtex credit term were always very good in effect you could leave payment till after month end but if you did not pay by 10th you were on stop

to move payment date back 20 days is almost a month and a hard slog for the people at the bottom i for one am fast losing confidence in qualtex i am not getting the service or the discounts i feel i deserve. i have opened a new account with electrue something i said i would never do again. to top it all they now have no reps so unless i complain to their call centre i have no voice. i think they have forgotten how important the customer is to their business

just my opinion

Dave

[parker]

Re: credit terms

Dave, I have always said if you have a problem give me a call. Ken is correct that all suppliers are cutting back so we have to do the same. I will call you. Regards Phil

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