Changing Payment Terms?
I own an art gallery and am in need of some financial advice. Patricia Reszetylo suggested changing payment terms of due dates from 30 or 60 days to improve cash flow. How do clients typically react to a change like this?
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Answers (421-422)
If they pay in advance of receiving the item the customer receives a 1%-2% discount. Payment from 1-30 days customer pays agreed upom price; payment from 31 day's + they pay 2% penality.
Is this change for vendors or customers?