MC009: Credit, Payment Terms, Collections & Borrowing

What is the right method for getting paid for your work? This is a subject that both Jim and I were reluctant to talk about; however, our goal is to bring the Metalworking Nation together as a community to talk about topics that people are afraid to bring up. What are your typical terms? Do you offer payment via credit card? Should you require a credit card for initial orders? Do you have a defined credit terms policy? If you are agreeing to an OEM contract that stipulates 90-120 day terms, are you considering the financing rate and including that in the price that you charge for the product or service? "Somebody has to pay it!" What is our approach to collecting? When do "put on the heat"? Do you use collection agencies? In our Manufacturing News segment, we discuss Workshops for Warriors, a non-profit that transitions veterans into civilian jobs with a focus on manufacturing training. In our Metalworking Tools segment, we discuss Z-Cut, a line of USA Made standard and highperformance end mills, drills and taps.