I have a company that wants to buy some more dog boxes from me, but I'm unsure whether to give them credit. They provide drug and security dogs.
Little history - they ordered a couple from me a couple of months ago. I did a quick credit check with the agency that lists the swedish version of CCJ's, and they came back clear. So I sent an invoice (ca. £1000) with 14 days credit. About 14 days later, they ordered another one, which I made, but told the guy collecting he couldn't have it until I was paid for the first 2. He said they only pay on 30 days, but called the boss and it was paid the next day. However, the invoice for the second box was also sent with 14 days, but hasn't yet been paid and is now on 31 days.
The boss man brought round another van last week for me to measure up for 3 big boxes worth around £2k. I asked him about the unpaid invoice, and he rather arrogantly (to my thinking) shrugged his shoulders and told me they pay on 30 days for everyone. I told him I thought it was a little unfair as I'm a small company turnover ca£28K/yr, plus I make them within a few days, good prices/quality etc. But didn't get a definite affirmative response.
I told them I would start the boxes at the weekend as they are desperate for them this week, but decided to see if they would pay the last invoice in the interim - which they haven't.
I know it's all fairly small figures, but it's actually quite a lot for me compared to turnover.
Anyway, I did a full credit check on them today, and not sure if I should extend them credit. Here's the figures converted to pound and translated:
Established 2007
Employees 11
Initial capital - £10,000
Credit rating 3/10 - "weak credit worthiness"
Turnover £1.5 million
Own capital 50K
Cash liquidity 101.87%
Profit last year £1K
Profit previous year £66K
Turnover has increased each year
Solidity 7.18
Recommended credit amount £10K
Number of requests to the state credit collection agency (but settled before court) 1
Value of the above request £500
I would could really do with the profit from this job (and any possible future work with them), but if I don't get paid it would be very difficult for me.
His lacky is coming round this evening to see how it's going, and I haven't even started yet as I had other orders to make for private customers who pay on collection, or pay before I ship.
So should I give them credit? I think not, and I should ask for half up front, then half on delivery.
|
