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Client paying his order upfront... or not

    • 7 posts
    April 24, 2013 8:54 PM EDT

    I would definitely ask for a deposit. I dread to think the amount of times people haven't paid me for my services when I started out, just because I didn't want to give out a bad impression when I started my company. Back yourself always and make sure you never lose out.

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    • 2 posts
    April 21, 2013 4:39 AM EDT

    Hypothetical situation:

    I am starting a new business. I don't have much money to invest.

    Say I designed a selection of products, could be something like say, stationnery.

    I have a manufacturer who is taking care of manufacturing the goods and shipping them to the logistics company, who's going to ship the goods worldwide.

    Paying the initial investment is tough, although the products are designed and ready to be manufactured. I'm only going to talk about the manufacturing here, because there are lots of other costs like designing the products, promotion, marketing and so forth. But let's just say the last step in the process is manufacturing, and this cost has to be paid up front.

    Now the question: Would it be a good practice, once all orders from wholesale clients are grouped, to ask them to pay a deposit, say 25 or 30% of the wholesale price they're paying, letting you manufacture the products without investing yourself? 

    I know that in some countries, 30 to 90 days is usual business practice in order to get paid. But since we're talking international business, with clients throughout the world, I thought of this idea.