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My calculation: based on $100,000 invoice and my cost of funds @3.8%
Net 60 = Cost's me $634.34 or 7.983%
2%-15 = Costs me $2,000 or 52.143%
1%-30 = Costs me $1,000 or 12.583%
I am not worried about a customer not paying. We have a sales contract and any non-payers do not get their next order shipped if delinquent. I rarely have any bad debt customers. In general, I always take discounts but rarely give them.
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