# Approving Net 15, 30 terms



## TshirtGuru (Jul 9, 2008)

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?


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## queerrep (Jul 18, 2006)

TshirtGuru said:


> 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?


Maybe I am reading the question wrong, but do you mean recommend a company to go through for Net 30???


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## proworlded (Oct 3, 2006)

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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## purple72 (Oct 6, 2008)

One option is to price it higher for net 30, and offer a % discount for net 10. If the $ is enough, they might jump on it. A smart fella once told me " Don't ever offer more credit than you can afford to lose". Kinda made sense to me.


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## TshirtGuru (Jul 9, 2008)

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).


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## TshirtGuru (Jul 9, 2008)

queerrep said:


> Maybe I am reading the question wrong, but do you mean recommend a company to go through for Net 30???


Yep exactly! Sorry, lately I've been wording things incorrectly. I am just plain tired this week, had a bad week...


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## proworlded (Oct 3, 2006)

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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## queerrep (Jul 18, 2006)

TshirtGuru said:


> Yep exactly! Sorry, lately I've been wording things incorrectly. I am just plain tired this week, had a bad week...


No, you worded it correctly ... I just didn't realize there were companies that did that.


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## TshirtGuru (Jul 9, 2008)

proworlded said:


> 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.


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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## shersher (Jul 25, 2007)

Yes they are factoring companies, just do a google search. There are a lot of different factors, it is based on your company credit, volume etc. CIT is a factoring company


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