A customer that historically has always discounted is now paying
at or beyond the net terms. We offer terms of 2% 15, net 30 days. Should
I be concerned?
Answer: Yes, the question
is how concerned – and the answer is that it depends on how far
past due the customer gets. Clearly, it makes no financial sense for
your customer not to take advantage of the 2% discount unless they have
serious cash flow problems. I would certain put this account on your
watch list. |