In previous years, as the end of the year approached, textile companies often felt “sad at the end of the year” due to the inability to collect accounts receivable.
This year, in daily surveys, difficulty in collecting payments has become the most commonly mentioned problem among textile companies, and the financial pressure it causes has caused even more headaches for companies.
At present, although there are still more than two months until the Chinese New Year, the payment collection work is already on the agenda.
There are not enough new orders, so we can only pay as soon as possible
Since the beginning of this year, the overall performance of the textile market has fallen short of expectations. Regarding the traditional peak season that has just passed, some textile companies have expressed their disappointment, saying that it was “big thunder but little rain”. A textile company admitted that the current order situation is less than in previous years. As early as early October, the market had a tendency to be idle, and the continuity of orders was worrying.
Since the new orders from textile companies are insufficient, the next work arrangements are probably to expand the market and collect payments quickly. But how do you stand out from your peers?
Through research, we found that lowering quotations and extending bill periods are common methods used by many textile companies. Against this background, the account periods of most textile companies have been extended compared with previous years, and the difficulty of collecting payments has gradually increased. Specifically, the payment period in previous years was 1-3 months, but this year it was generally extended to 3-6 months, and no effective mitigation measures have been found for this part of textile companies.
A weaving company revealed, “Because the fabrics have been unable to sell at a high price, profits are not very optimistic. Sometimes, in order to support workers, we have to take high-volume orders, and most of these orders are not profitable. As the market weakens, the number of orders placed As the order difficulty continues to increase, it’s better to focus on collecting accounts and try to reduce the risk of losses.”
For a long time, the textile industry has been “selling on credit”. Textile people have more or less experienced the double dilemma of “difficulty in sales and difficulty in collecting payment”. Especially in years when the economy is not good, collecting payment is an important issue for textile enterprises. The most important thing.
Lao Lai appear frequently and all kinds of scams are difficult to guard against.
Although the extension of the account period is the main reason for the difficulty in collecting money, some force majeure factors cannot be underestimated. For example, the problem of old laity is getting worse.
As we all know, weaving enterprises are in the middle of the industrial chain, and almost all of their downstream purchases are sold on credit, but when purchasing raw materials, they need to pay in cash. In this way, weaving enterprises are equivalent to “taking the biggest blame” and “taking over the most troubles”, and they are more likely to be coveted by old dealers.
A few days ago, during a visit, the person in charge of a certain weaving company shared with the editor a common scam in the industry.
There is such a type of scammer. When they first do business with you, they have good payment and reputation, and they are not good at bargaining. They are high-quality customers. After several rounds of cooperation, he would raise a small amount of debt due to financial constraints, and then settle the account in a timely manner. Later, he directly owed a big vote. When you ask him for money, he not only transfers the assets, but even disappears, leaving you with nowhere to collect your debt.
It is reported that there are many people who have fallen into the above scam. Who would have thought that a long-term and high-quality customer would suddenly turn into a deadbeat? In addition, situations such as low-cost sales of cloth on credit and contract fraud also occur from time to time. Faced with endless scams, textile bosses have become distraught after hearing about the “lao Lai”. After all, there is still a possibility of collecting the accounts receivable. For textile companies, Lao Lai is like “losing his wife and losing his troops”!
No wonder, more and more textile companies are starting to lay out the spot model. For them, cash and ready knots are really delicious.
In the era of high costs and thin profits, if those accounts receivable “disappear”, the company is very likely to “work in vain for a year.” However, judging from company feedback, it is much more difficult for textile companies to collect payments this year than in previous years, and the overall progress is relatively slow.
</p
