RE: My KISS philosophy scenario....TK
posted on
Jul 15, 2005 05:35PM
Further, payment terms vary, but typically the manufacturer will give you 30-60 days after delivery to make full payment, and offer the option of paying even later but for a nominal added (interest) fee. Sometimes they call it a ``discount`` for early payment if payment is received within 30 or 60 days. Works out the same though....
In big business, they understand that money is moving from party to party with associated delays, and set up their accounts receiveable systems accordingly. If everyone in the food chain always had to fully pay for things up front, all business would grind to a halt.
And this ``system`` works its way down. How does the digE manufacturer pay for the raw materials to build product? Same scenario....
SGE