How to collect payment from small retail stores and shops?
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How to collect payment from small retail stores and shops?
How to collect payment from small retail stores and shops?
I have recently started a small clothing line and send out a linesheet to some retailers (mostly small shops and boutiques) and several have committed to placing orders. It is our first line, and I was wondering what the best way to collect payment for an order is, particularly for international buyers?
Keep in mind, it is our first line so we do not have any credibility and we'd also like to establish good relationships with these stores/online shops, but we also don't want to send away shipments on Net 30 and be left empty handed. We do have a business checking account open, and I was wondering if the best way to do it would be to request a down payment, or do Cash on Delivery, etc.? Or do we have to simply take the risk as a new company and do Net15/30/60?
Any advice would be appreciated! Thanks in advance!
Re: How to collect payment from small retail stores and shops?
I would think you could offer a discount for C.O.D. payments. You could adjust you're pricing to offer discounts that encourage quick payments. This is just an idea. ... LOL ... JB
Re: How to collect payment from small retail stores and shops?
Factoring may also be an option for you.
I don't remember if I addressed it in the thread Rodney linked to, or not (you can search the forums for factoring. I know I've talked about it before somewhere!), but factoring sounds good if you are worried about getting paid from small retailers. Or if you just don't want to deal with things like Net30, and the other stuff.
Re: How to collect payment from small retail stores and shops?
Quote:
Originally Posted by Comin'OutSwingin
Factoring may also be an option for you.
factoring works but the downside is that they handle the receivables for you. So, they deal directly with your customer relating to amounts due etc....sometimes they will turn the customer off because your buisness is not their buisness really, so the service/contact is not the same as if you were dealing with your customer.
For amounts under $ 1000, everyone has a credit/debit/card, thats what credit/banks do...finance buisness. So, I would ask for such type of payment up-front. In the event your client does not have a cc or line of credit....PRE-PAID certified check is best. Not even Check-OD because the check may bounce.
COD is fine too.
terms for small amounts is more work for you. Because you then need to set up your own receivables and do everything by the book, like invoices, monthly statements, year end audits etc....it's more work....another job. But if you are in need of such A/R dep. because you are making sales then it's well worth it.
Re: How to collect payment from small retail stores and shops?
I feel that credit card payment in exchange for goods is the way to go. Maybe if you explain to them that this is a new line they might understand. Any business owner should remember what it's like just starting out.
Re: How to collect payment from small retail stores and shops?
There are a few methods that work good. Personally, I would do 50% down, 50% upon delivery. With the really good customers, I would use that and then over time establish terms with them. 2/10/30, 2% discount if paid within 10 days, Net due in 30
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How to collect payment from small retail stores and shops? 
