What topic is talked about the most at the end of each year? That’s how much payment has not been collected! At the end of each year, which pictures are reposted the most? They are debt collectors! That is the deep pain in the textile people’s hearts! But the most painful thing is that before the payment has been received, the dyeing factory starts to take delivery of the goods! Recently, printing and dyeing factories have issued holiday notices one after another, and at the same time, customers are required to bring money to pick up the goods!
01The dyeing factory has the right to pick up the goods with payment
Anyone familiar with the printing and dyeing factory knows that the payment is paid on the 20th of every month. Although the arrears are not long, it also gives the cloth boss some turnaround time. However, the end of the year is already the period when funds are most tight, and cash withdrawals are ushering in, which makes it even worse. Requiring all customers to bring money to pick up the goods is actually a sign that the dyeing factory has a strong voice. Especially in the recent stage, dyeing factories have basically ushered in the order rush and stocking up before the year. Not only are the orders sufficient, but many factories have also sold out. The time at the end of the year is very special. It can almost be said that traders will ship goods before the Spring Festival at all costs, so now all customers can naturally accept it. As for dyeing factories, there is no credit sales model. They usually pay monthly, but at the end of the year when everyone needs funds. In addition, the industry is relatively difficult this year, and they are skeptical about the amount of working capital in the hands of customers. In order to avoid customers having no money and difficulty in settling dye fees at the end of the year, it is also necessary to take payment to pick up the goods.
02It is more difficult to collect money in the industry this year
Various credit sales methods have always existed in every link of the textile industry chain. Regular customers who pick up fabrics from ordinary weaving mills are paid monthly, usually one month, and slower, maybe once every two to three months or even half a year. The post-finishing companies are even slower to collect payment, and many of them are paid annually, at the end of each year. Settlement once. The traders’ repayment depends on the signed contract. Most of them pay a deposit in advance, most of them take delivery of the goods with money, and a small amount is left to be settled in 3-6 months. However, this year, under the influence of the epidemic, the overall demand and economic recovery are not as good as expected. In addition, due to the influence of the weather, the sales of down jackets are not ideal, and clothing factories have a backlog of inventory. It is more difficult, so it becomes more difficult for downstream companies to collect payments. Many cloth bosses said that the pressure to collect payment this year has increased compared with previous years, and the payment for goods has been extremely slow, resulting in difficulties in capital turnover.
A senior textile person revealed that the payment collection rate of clothing companies at the end of this year is between 30% and 50%. Companies that can settle 70% are very good customers and basically will not settle the payment at the end of the year. clear.
The textile market is not good this year. All downstream textile trading companies lack orders and profits are not ideal. In the domestic market, due to excessive clothing inventory, sales this year were lower than expected, resulting in reduced cash flow. Garment factories defaulted on payments to fabric merchants, and finally fabric merchants defaulted on payments to gray fabric merchants. As the overseas epidemic situation continues to worsen, life for foreign trade end customers is also difficult, and the speed of repayment is far slower than in previous years. In addition, shipping has been unstable for a long time. It is difficult to order containers and shipping schedules are delayed, which has caused end customers to delay receiving goods, which also affects the time to pay for goods. In short, if there is a problem with one party’s funds, the entire industry will be in debt.
During the editor’s visit and research, we also found that there are still companies that do not sell on credit. On the one hand, they have a strong “right to speak”, and on the other hand, there is no shortage of orders. And the secret to satisfying both is the product! With better products, especially new self-developed fabrics, the competitive advantage is strong enough and the products are difficult to be replaced. Naturally, it has the right to dominate, instead of being “led by the nose” by customers. In general, �Both dyeing factories and customers have truly felt the scarcity of orders and shrinking profits in the market surrounded by the epidemic this year. But the more difficult the industry is in, the more important it is to consciously collect money! Finally, we call on people in the industry to consciously return their money and take annual leave as soon as possible! At the end of the year, you have no idea where your money has gone? It’s not floating outside, it’s just stuck in the inventory, endless loop after loop! The bank only sees running water, but no balance… This is the textile market this year! I will shed tears if I talk too much….
</p
