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Wholesale billing past due accounts

Jewelry Discussion
#1

I’m very new to wholesaling and attended my first wholesale show this
past summer. I managed to pick up some accounts, and after much
debate, and for better or worse, did net 30 for billing. Most of my
accounts now have balances due or are just past-due. Given the
current economy, I’m very uneasy about this, and I would like to
know the typical follow up for due/past due accounts. Send another
invoice? Call to follow-up on how the merchandise is selling and
mention that the balance is due? Any suggestions from those more
experienced would be appreciated!

Regards,
Beth Taylor

#2

Beth, my daytime job is collection for large oil companies, what we
do is follow up with a friendly email or phone conversation at 40
days asking if they are in need of anything more to ensure the
invoice is paid within the next 5 days. Normally at that point you
will find out if they need another invoice or missing some
paperwork.

Hope that helps,

Regards
Tina
CreatedWithFire Studio’s
www.createdwithfire.com

#3

Dear Beth,

And to any and all of you that are in a similar position,

The 2009 MJSA EXPO New York at the Jacob K. Javit’s Center, on March
8th-10th, will be offering a free seminar by Dione Kenyon, the
President of the JBT (Jeweler’s Board of Trade). There will also be a
featured article in the January issue of the MJSA Journal, available
in mid-December. Below is the description.

Dealing with Slow Payers and Bad Debts

"In the current economy, some of your best customers might be
struggling to pay the bills. How do you work with them to ensure that
you get paid in a timely manner? How do you establish an effective
payment plan? At what point do you cut them off? And what do you do
when slow payers are affecting your ability to pay your suppliers?"
Dione Kenyon answers these questions and offers advice for getting
paid in tough times.

This is a very important presentation, considering the current
economy. If you have an interest in attending the seminar or
receiving a copy of the January issue please email me at
corrie.silvia at mjsa dot org

All the best,
Corrie Silvia
Manufacturing Jewelers & Suppliers of America

#4

hello Beth

when you have past due bills yourself, let’s say from your dentist
or electric bill or phone bill, better yet your UPS bill, your
credit card bills, what do they send you?

it is usually a past due notice,with interest accrued or a statement
stating what you still owe past dure certain days or months etc. i
usually do that with a short personal note,so it won’t be as harsh.
I take example from the big companies since they seem more on the
buisness wave lenght.

Hratch Babikian

#5

When I was in my business in my past life I sent out statements at
the end of the month summarizing the purchases during the month and
it gave the amount due, past 30 past, 60 days, and past 90 days.

When setting up the account I had past due totals are subject to
interest at ?? percent annual and ?? percent monthly.

Those accounts that were past 60 days would be placed on a Cash Only
basis.

I had accounts payables that would give me an additional ?? percent
discount if I paid by the 10th.

All of this needs to be setup in the accounts receivables agreement.
It would be prudent to check with your lawyer on the wording of your
agreement.

I would also find a book on business communication and forms. My
father-in-law had one that had various levels of communicating the
various levels of lateness on payments.

I found the mass majority of my customers were good payers, but that
typical percentage needed to be prodded to get them to pay.

Never apologize for asking for you money. I told that by a very
successful businessman. He was not a cut throat type of person, just
a good businessman.

Good luck,

Ken Moore
www.kenworx.com

#6

Beth, this time of year, many of my good solid accounts fall a
little behind just due to balancing everything. I usually send
another invoice with the due date highlighted.

Give them a few days to get a check to you, and then I’d call and
ask about payment.

My opinion, if people are late the first time you give them Net30, I
would revert them to credit card only for the next order. Don’t make
it personal. Just explain that any accounts that are over x amount
of days late will revert to cc terms only. I always feel it’s easier
to have stricter terms up front and then to make exceptions where you
see fit than it is to try and backtrack.

good luck and let us know what happens!

Amery
Amery Carriere Designs
Romantic Jewelry with an Edge
www.amerycarriere.com