Payment terms OT

May 20, 2009 3 Replies
R

I know that this is a "model eng" group but as I realise that many posters are in manufacturing business thought it may be of interest.



I have done business with a major manufacturer in the uk for 20 odd years. Payment always 30 days. They are now asking me to accept 90 day payment.



They got a resounding NO!



It looks as though £28,000 of currently quoted assembly and test rigs business will not come my way. I am supposedly retired now so do not really care. Good luck to any who will accept this kind of agreement.



Rant over



Richard


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C

Much better than many companies that would simply have got you to do the =

work and then not paid for 90 days.

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B

Companies that do that run the risk of falling foul of the late payment legislation and incurring interest on the debt. In some ways it's better not to have any payment terms in the contract if you are a small business because then they default to 30 days anyway.

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S

When I had the watch and clock repair shop, a machining service was also offered. Anything done for other businesses was 30 days net. Interest was charged for late payment. If they didn't like it, they could go elsewhere. Some of my clients had a reputation for paying at the last possible moment. I was remunerated amazingly fast!

Steve R.

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