Back to Ganoksin | FAQ | Contact

Paying terms net 30

Dear All,

Our accountant told me yesterday that a banker he knows routinely
tells his clients to not pay their vendors prior to 60 days. This,
in the banker’s opinion, is a good way to stretch your money out,
especially during these lean times. We pay our bills prior to the
due date and always have. Seems like the thing to do. Any thoughts?

david lee jeweler
Mason City, Iowa 50401

I pay my bills the day they come in.
I also have excellent credit.
This is not a coincidence!


I have to admit that I follow this policy, but for other reasons. A
lot of times, invoices come with packing slips and a multitude of
other paperwork along with my materials and I just don’t have the
time (or, admittedly the organizational skills) to process the
paperwork and the supplies at the same time.

I like to wait for fresh envelope with my invoices clearly listed,
so that I can file it to be paid.

It also lets me know roughly what my bills will be within the next
30 days, and plan accordingly. I know that this is an illusion, as
I’m actually 30 days behind, but it works for me.

Angel Neal


Heard that statement over the years, it’s a dumb idea. Calculated a
30 day difference out once, for 1,000 it’s less than a soda pop and
that is only if they take your balance quarterly to pay on. What
happens if it is late?


These days everyone charges you interest on it when you’re late so
I’m not sure what the advantage would be unless you were in a strong
position of power (like maybe you made up 50% of the vendor’s
business) and could negotiate out of those charges.

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140

When a setting/labour client stretches out their payments to me. I
will think 2-3 times about doing his setting ‘on time’. I do not
accept a 30 day ‘period of grace’ or waiting period. Why should I be
a ‘banker’ to them? Diamond memo sheets, sales invoices and labour
invoices ‘must’ be paid on time and this way the ‘lines of
communication are kept open’. IF you buy food at a Publix or ?, do
you say to the check-out person… “oh, I’ll pay you in 60 days” see
how far you’ll get to the front door!..


lot of times, invoices come with packing slips and a multitude of
other paperwork along with my materials and I just don't have the
time (or, admittedly the organizational skills) to process the
paperwork and the supplies at the same time. 

Create a simple filing system that works for you. Files don’t have to
be in a drawer, out of site.

You could buy wall pockets, mark them “To be paid,” put them in
there as you get them.

If you are not a “files” person, give yourself permission to
organize your papers in a different way. It’s not files or nothing.

Using Quick Books would also help you with this. Keeping track of
expenses is an important part of business.

Hard to Find Tools for Metal Clay

Thanks Elaine! I really like that idea of trays on the walls. I
already have an inbox system for new orders, urgent tasks, pending
projects and ‘to be filed’, I never thought about adding a ‘to be
paid’ one for invoices.

Doh! Oh well, I guess that is why I am in a creative job instead of
an office. :slight_smile:

Angel Neal
Chimerique Jewellery Design

My invoice program includes aging. After 30 days, the invoices are
sent to JBT, where THEY create credit rating profiles. 60 days is a
late pay in the jewelry biz and will adversely affect your ability
to purchase. Makes no matter if you are a JBT member or not, sooner
or later they will rate you. The banker who recommended that small
businesses wait 60 days has his head where the sun doesn’t shine,
tell him I said so. Oh, let your mortgage payment to him run 60 days
late, see what he says. Sorry, that is stupid financial advice.

Also, if you ordered a stone from me, my invoices clearly state Due
On Receipt. Not 60 days, not 30 days, not next week…on receipt.
Violate that ONCE and you are on a prepay basis, period. I am not
here to finance the buslness of others. Cash flow is king.

Come to think of it, exactly who and where is this banker?


To the person having trouble dealing with incoming packages:

With little respect, this is nonsense. If you don’t have the time to
pay your bills on time, you don’t have time to order in the first
place. Next time you place an order with someone, tell them about
your innate inability to process a single piece of paper meaning you
might not be able to pay them on time or maybe you can’t “find” the
invoice later. Good heaven’s people, grow up! Better yet, go find a
job somewhere where responsibility is not an issue, like the

I’d fire you and quick.


a banker he knows routinely tells his clients to not pay their
vendors prior to 60 days 

I wonder how that banker reacts when he’s paid in 60 days.

I just don't have the time (or, admittedly the organizational
skills) to process the paperwork 

There’s another way.

In years past and previous incarnations I would dread pay billing
night. Spread out on the kitchen table with dozens of statements that
need to lined up with invoices and dated, who gets paid first, wait I
need findings so pay him first, how much, blah blah blech. Its
tedious and really can drain you mentally.

In my present business model I pay by debit card for all
non-inventory items. This includes findings and special
orders(mostly). For larger inventory purchases I hand over post dated
checks with the order, some vendors will go 7 monthly checks or more.
I have a few vendors who say “just give me a small check now and then
when I stop in”. These are people who know me, I know them and they
like this arrangement too. If I’m interested in a new vendor my old
vendors give me very good references. I don’t deal with the
cutthroats, I don’t need it.

I never have to do the midnight shuffle anymore. I don’t have old
bills in the back of my mind. I don’t have January dating that eats
up my whole Christmas season. I don’t have the big nut to crack
anymore. I sleep nights. I look forward to coming to work(there were
times I honestly didn’t). It is not easy to get this system going if
you’re accustomed to playing the time stretch game but its been well
worth the initial struggle.

Wayne! fantastic reply…:>)

in keeping with this topic, I always pay my 'service providers’
before receiving my own funds. I need them more than anything. I just
sent a letter to my client to finalize ‘his’ payment to me before I
pick up ‘his’ ring from my diamond dealer and his jeweller…no
money, no ring, two unhappy folks. to further this…what world is
that financial advisor from? not in the ‘real business’ world!
is the ‘supreme’ king, using Waynes words, and its very true!..


Come to think of it, exactly who and where is this banker?

I don’t approve of this practice but I can assure you that it is a
normal part of a lot of larger businesses program. I always remember
a story (from my parents who knew the guy) about the original owner
of Cuisinart. When he was starting his business and the concept of a
food processor was unknown except among an elite few, Bloomingdale’s
became his biggest customer (they helped promote the concept a lot
for him as well). They routinely refused to pay him in less than 120
days. When he would complain, they would just look at him and say,
Carl, don’t worry, it’s just like having your money in a bank. Well
that was their attitude anyway, not his. But for an enterprise of
that size if they can delay paying millions of dollars for months at
a time, they do, in fact, make a whole lot more money on their money.
And if they are in the position of being able to demand that (by
being your largest customer) there isn’t a hell of a lot you can do
about it if you want their business. However, I think for most
smaller businesses, the savings would be so miniscule that it simply
wouldn’t be worth antagonizing your suppliers.

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140

Arrrgh ! This is so annoying to say the least. I used to send my
invoiced work as “net 30” and waited six weeks for payment from many
people. Now I only invoice as payment upon delivery, no exceptions. If
a plumber or electrician comes to do work they expect payment upon
completion of project, and you can’t leave a Dr. office without
paying your bill.

Wow - point taken, but a bit harsh, Wayne.

Ironically, my problem is not so much on my ‘inability to process a
single piece of paper’ but rather from companies inability to keep
track of their own invoice system. I often get invoices that have
already been paid, crossed with payment in the mail, allocated to the
wrong account, statements that are months old etc. Or, I have placed
several orders in quick succession. In my experience, waiting 30 days
allows everything to catch up and I can send a cheque for the current
amount of the last month’s orders.

I’d be very surprised if I was the only person who has trouble
keeping on top of paperwork as well as trade shows, craft fairs,
customer orders, tracking stock, upkeep of websites, marketing work
and actually making the jewellery.

Bad employee for another company, maybe, but I seem to be doing ok
at running my own businesses.

Angel Neal

I am always so suprised when everyone gets really riled up on things.
I’m not really understanding why it’s hard to keep track of business
bills either. I pay everything with the credit card (my own business
credit card always kept seperate from personal) and have never had a
problem. I pay (essentially) one bill a month, absolutely 100% on
time, every month. About the only bothersome thing is that I have
great credit and, so I get about a bazillion offers for more credit,
every month.

There are lots of tools available to help you organize your bill
paying. I log onto my business checking account (I don’t ever write
checks out of it though, there’s no need) and pay my bill (cc) right
out of there. There’s no charge. My cc company sends me an email 5
days before my bill is due (I set it up and it’s free too) so there’s
very little chance I will miss my deadline. Automatic bill pay is a
wonderful thing too. I guess you could set it up to pay things 30 or
60 days out although I don’t know why you would want to do this. In
my mind, when you habitually go 60 days out, you have absolutely no
wiggle room. If something special comes up, will your funds be there
for you? or are you already stretched all the way out your 60 days,
that you have to pass on deals because you’re short? Why are there
people out there still writing checks? I guess being the former
accountant that I am, I could go on and on about this one. Forgot to
mention…if one pays everything with the cc, at the end of the year
you can print out a year-end statement (again, free) to back up your
tax return. I get disorganized too (just have a look under my bed)
but this stuff is not hard at all once you set it up.

Good Luck…tax time’s coming!

Kim Starbard

I always fear losing an invoice in the disorganization that is my
desk. That is why I am cash, check or credit card up front with my
vendors, and the due date of the credit card is on my calendar. That
way everyone gets paid on time, keeps my credit and business name
good and I can worry about filing when I have the time… which is
usually once a month. Besides, if I don’t have the money now who says
I will in 30 days?

Custom orders are 50% up front, which covers the materials and makes
sure my vendors are paid. I will, on custom chains for other
jewelers, allow a net 30 on the balance of the chain, but only after
the jeweler has been a customer in good standing for 4-6 months. If
any of them go over the net 30 then it is back to balance due upon

Everyone deserves to be paid. When people drag their feet is costs
all of us in higher prices or companies enacting more restrictive
policies. It isn’t fair and it is bad business.


Let’s see. Good reasons to make your suppliers wait 60 days to pay

  1. Really need to save fifty cents this month.

  2. Don’t need a good credit rating.

  3. Don’t care how much my suppliers charge me for work they do or
    things they supply me with.

  4. Good suppliers are easy to find.

  5. Could care less about my reputation within a small and
    communicative industry.

  6. Could care less if my suppliers have families to feed and bills
    to pay.

  7. Love to hear the little people beg.

  8. Really want to stick it to the man.

Good reasons to pay your bills on time:

Reverse all of the above.

Tell your “banker” friend he should probably find a new line of work
before the bank he’s working for finds out what advice he’s giving
people and cans him.


tells his clients to not pay their vendors prior to 60 days. 

I wouldn’t be interested in carrying an account that long. That’s an
interest free short term loan. Meanwhile, any loans I have are going
to be accruing interest. I ask for payment within 10 business days of
delivery. I figure by that time they’ve had long enough to get paid
by their customers. I’m not interested in being a bank. If someone
needs terms like 60 days, they can take out a loan from their
favorite financial institution. I sometimes extend that somewhat for
certain accounts under extenuating circumstances, but if I’ve sent
two deliveries and haven’t been paid for the first one, I have to
stop work on that account until it get’s paid up. If it takes someone
60 days to pay me, I’d have to put them on a C.O.D. basis until I had
a good indication they were going to be able to pay in a more timely

David L. Huffman

I really like that idea of trays on the walls. I already have an
inbox system for new orders, urgent tasks, pending projects and 'to
be filed', 

You’re welcome!

I also use the “Inventory Control Trays” from Rio. I love them. They
are black, stackable, there’s a space for a label. One of the things
I use them for is to organize all the parts for one necklace.

Another thing is, I suggest you never have a “to be filed” pile.
Yikes. Pre-file everything by having a specific spot for it.

For example, you could have two categories, Income and Expenses, to
keep it to the absolute simplest. You could keep these in plastic
drawers, or “in” boxes, or wall mounted folders – anything but a
pile on your desk.

Then when you sit down to file once a month or once a quarter, your
papers are already pre-sorted into the two largest categories.

You may be someone who is very visual and has mental block against
filing, which is so flat and out of sight So an intermediate system
like this that is not files might work for you.

Actually, if you have enough space, you could entirely use drawers
or whatever for your files.

You may not realize it, but you can buy plastic drawers that are big
enough to hold 8.5 x 11 paper. The most consistently available will
be Rubbermaid from your local Office Max or Office Depot. They are
black frames with clear drawers. Label with your Brother P-touch. You
have one don’t you? : )

Hard to Find Tools for Metal Clay