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Limits on Terms customers?

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Old July 6th, 2016, 12:39 PM   #1 (permalink)
Robert Young Robert Young is offline
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Default Limits on Terms customers?

Hi,

For those that offer terms (net 30 or whatever) to your clients do you have a limit? Standard limit or case by case? ($500? $1000? $2500?)

Or do you just let them rack up as much debt with you as they want? If so, Or then, at what point do you reign anything in? 1 week after the net 30 has not been paid? 30 days after? etc?
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Old July 7th, 2016, 12:33 PM   #2 (permalink)
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Default Re: Limits on Terms customers?

maybe digitizers don't offer terms anymore?
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Old July 12th, 2016, 10:47 AM   #3 (permalink)
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Default Re: Limits on Terms customers?

so we offered terms to a long time client that requested them. (cynical me thinks that when a client requests terms it means they are having financial difficulties... and are looking to "buy some time" in their bills.... But that only usually gets them 30 days.. .then what? If you really have a problem 30 days is not going to fix it IMO)

Ok, anyway we give them terms..... That was April 15th.... have not received payment one since. First they said the emails were going to the incorrect address.... now we send to 3 addresses.. lol They sent a check for all the late invoices but it was returned yesterday for an incorrect mailing address.... odd since our invoices have the address at top center AND at bottom left.

They owe a bit over 2,000.00
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Old July 12th, 2016, 10:51 AM   #4 (permalink)
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Default Re: Limits on Terms customers?

remember we ONLY digitize...... one hit wonders... we get the original fee, nothing past that unless a date or something minor changes as a revision to the design.. they get mark up on GOODS SOLD... EMBROIDERY FEES, and maybe even recoup of the digitizing? but they (any embroiderer) gets the first two EACH AND EVERY TIME their client orders.... lots of profit there I would expect.... digitizers get 1 hit... that is all. and you cannot pay for that when you are making money for YEARS off of the service we provide? odd , no?
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Old July 28th, 2016, 07:56 PM   #5 (permalink)
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Default Re: Limits on Terms customers?

We don't offer terms anymore, though.
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Old July 29th, 2016, 09:53 AM   #6 (permalink)
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Default Re: Limits on Terms customers?

update... after another snafu and no check... they agreed to resend the original check (which we have since received) and offered to catch up the now late invoices by cc over the phone, which we accepted of course! . So the client is now current within the 30 day terms!
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Old August 19th, 2016, 07:30 AM   #7 (permalink)
Alicia Collings Alicia Collings is offline
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Default Re: Limits on Terms customers?

I think your suggestion would be helpful for me. I will let you know if this works for me Thanks and keep posting such a informative forum.
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