MC009: Credit, Payment Terms, Collections & Borrowing [Podcast]

By February 6, 2015 Uncategorized
E9

What is the right method for getting paid for your work?

This is a subject that both Jim and I were reluctant to talk about; however, our goal is to bring the Metalworking Nation together as a community to talk about topics that people are afraid to bring up.

– – – Are you interested in the subject of future MakingChips Episodes?  Go to MakingChips.com/Future – – –

What are your typical terms?

Do you offer payment via credit card?  Should you require a credit card for initial orders?

Do you have a defined credit terms policy?

– – – Would you like your manufacturing questions answered?  Ask us anything related to production, tooling, engineering, design, best practices, technology or marketing.  Go to MakingChips.com/PodcastQuestion – – –

If you are agreeing to an OEM contract that stipulates 90-120 day terms, are you considering the financing rate and including that in the price? “Somebody has to pay it!”

What is your process for collecting?

When do you “put on the heat”?

Do you use collection agencies?

– – – Never miss an episode!  Learn how to subscribe: MakingChips.com/How  – – –

In our Manufacturing News segment, we discuss Workshops for Warriors, a non-profit that transitions veterans into civilian jobs with a focus on manufacturing training.

In our Metalworking Tools segment, we discuss Z-Cut, a line of USA Made standard and highperformance end mills, drills and taps.

5 Comments

  • Brianna Eck says:

    Our company has Net 30 days terms, as well. My protocol for following up on past due invoices includes the following.

    7 – 14 days past due – Send the customer an email with a copy of the invoice and the invoice due date circled in red. I let them know their invoice is past due and I request payment status for the invoice.

    14 – 28 days past due – Call the customer’s company and ask to speak with someone in accounts payable.

    I have been working for Denezol Tool for almost 1 year now, and I have yet to come across a company that has paid us any later than 28 days past due.

    Hearing what your protocol is for following up on past due invoices reassured me that I am on the right track. Thank you for sharing your personal experiences and opening up this topic for discussion.

    Your time is truly appreciated!

  • Russ Waddell says:

    Job shop credit card payment and terms is a hot topic. I just read this thread and it reminded me of this episode:

    http://www.practicalmachinist.com/vb/shop-management-owner-issues/new-customer-wants-pay-cc-299702/

  • Charles says:

    THe show is great and I have learned a lot already from you guys. I just started with MC001 the other day and I am making my way through the shows…currently on MC009.

    I do have a complaint…As I am frequently interrupted, I end up missing segments of your podcast and when I try to go backwards, the audio just stops. I try to start all over and then skip to where I left off, and it doesn’t play either. Maybe this is my old laptop using Windows 10, but other podcast seem to work ok.

    Just letting you know.

    Thanks,
    Charles

    • Jason Zenger says:

      Thank you Charles! We don’t accept complaints…just kidding. We are actually introducing a new podcast player on our website. We are using it with new episodes and and we are also going backwards to add it to old episodes. Jim and I agree that the old player isn’t that good, but we are always looking for ways to make the podcast better. If you go to http://http://makingchips.moonpupproductions.com45 , you can see the new player in green just below the image. Let me know what you think about this new one.

Leave a Reply