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I have had major clothing brands calling us to screen print for them from Karmaloop, and they are asking for terms such as Net 30. Do you guys recommend a company to go through for this?
Approving Net 15, 30 terms
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Maybe I am reading the question wrong, but do you mean recommend a company to go through for Net 30???
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If you want to take the risk, and probably a high risk in today's economy, then you can offer them terms that are acceptable to you, and them. Keep in mind that retail sales are way down and if the stores are slow paying their suppliers (your potential major brand customer) then you are going to have a difficult time collecting your money on time. If they are supplying the garments and you are doing the printing, and can make a reasonably high profit, you might want to take a chance depending on your financial strength.
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Yes we are in the talks of contract printing. Our customer will be supplying the blanks, we will just be printing.
I know we can just set terms ourselves, but I worked for a company that gave out NET 30 terms all the time, but they had a company deal with it.
For instance:
Customer bill comes out to $20,000.
Company pays me $20,000.
Company waits for 30 days to collect from my customer.
Once customer pays the company, they take a percentage out for "commision."
---- If the customer doesn't pay during their net terms, the company acts as a collection agency (not sure if they outsource this part).
The company acts as a bank and gives me money for the bill in exchange for a small percentage. (they also check the customers credit history and recommends approval or rejection).
I know we can just set terms ourselves, but I worked for a company that gave out NET 30 terms all the time, but they had a company deal with it.
For instance:
Customer bill comes out to $20,000.
Company pays me $20,000.
Company waits for 30 days to collect from my customer.
Once customer pays the company, they take a percentage out for "commision."
---- If the customer doesn't pay during their net terms, the company acts as a collection agency (not sure if they outsource this part).
The company acts as a bank and gives me money for the bill in exchange for a small percentage. (they also check the customers credit history and recommends approval or rejection).
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Yep exactly! Sorry, lately I've been wording things incorrectly. I am just plain tired this week, had a bad week...Maybe I am reading the question wrong, but do you mean recommend a company to go through for Net 30???
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That type of company is called a factor. They usually only deal in larger accounts and with today's economy craziness who knows who they will 'lend' the money to.
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No, you worded it correctly ... I just didn't realize there were companies that did that.
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AH HA! That is the word I was looking for "Factor." What??? The economy is bad?!?! lol JK, yesterday I was standing in line to get lunch and the most annoying 7 ft tall guy on his cell phone asking if his buddy knew that the stock market is down and that real estate is down. My first thought: "No really?!?!?"
Thanks!
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