These vary from country to country depending on legislation and accepted local practices. Thirty days credit from date of delivery is what most distributors boast. This is often interpreted as 30 days from the day on which they write once-a-month checks. In the worse case this means you are giving away 60 days credit if you deliver your goods on the following day.
Establish exactly how payment terms work so you can plan your deliveries and cash flows and not flag invoices as due before they really are. It is not uncommon for major distributors or chains to extend this credit to 90 days, especially when trade is slow.
With foreign distributors and dealers, ensure that the payment is made electronically for the exact amount in your local currency. This removes the uncertainty of the "check's in the mail" syndrome and ensures the right amount is paid into your account regardless of changes in exchange rates. For amounts less than $40/£25/ €40, the cost of cashing a foreign check can be greater than the value of the check.
Was this article helpful?
As with any web site, SaleHoo has a number of features that will help you in buying products from around the world. Once you have an account on SaleHoo, which only costs a one-time fee, you can establish up to twenty named searches for products. After that, any time those items become available, you’ll be alerted.