1). The customer without good credit (negative rating, delay payment, refusal freight ect), the usual we do not deal with them. Even in business, we can only accept TT in advance and need to prepay freight
2). New customer or have several deals, we had a flexible payment terms include: TT, COD, ESCROW. Be settled by the amount (such as below $5000), we can apply NET terms for you after checking the reference is good enough for our company’spolicy. Above $5000, negotiated payment. such as for escrow, if for big order, we can consider to afford the half of escrow fee or even for full!!
3). VIP customer, according to the cooperation time and monthly order amount, we can apply more favorably payment terms for you:
For continued 3 month, if we can reach the certain amount for each month as high as 10K usd with on time payment, for the forth month we can consider NET 5-7 terms. And for each order, if amount is over 3k-5k, we will need to do TT or escrow.
For whole year, if we can get totally 300K used, each month no lower than 20k usd, we can consider for NET 15, paid twice a month for next year. Still if with too big order, which is around 10k usd, we may prefer the buyer to pay for deposite as 30%-50% or do escrow for big order now matter for what kind terms we do for that time.
The credit amount for each month is also changed for the cooperation improved, if we can start to do NET 5-7 terms, the maximum amount is with 20k usd for first 3 month, which means once the credit amount over 20k,we need to close some orders first.
If our cooperation we can do net 15 terms, the credit amount even can as high as 20k-30kusd.But that request our customer to pay for the parts on time indeed.