Seeing that the textile market has reached the end of the year, and in one week’s time, weaving factories of all sizes will start to shut down for holidays, but there is still a group of people who still have to complete their mission even if they stick to the 28th and 29th of the year. , the collection work at the end of the year is in full swing. It seems that this year’s payment is still as difficult as ever.
“The repayments have started long ago, and there are still many accounts that have not been paid back. At this time, customers have made various demands. There is something wrong with the cloth, the color is wrong, and they always want to deduct some money to erase the money. It’s a small change and it’s quite refreshing when placing an order. Money is not a problem for production anyway, but now we are criticized for all the money we need.” said a textile boss.
We agreed to pay, but kept putting off the payment.
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, making it more difficult to pay for goods. Therefore, it is more difficult for downstream companies to collect payments.
“It is more difficult to get payment for goods this year than in previous years. There is no profit due to the low price, so we rely on the receivables at the end of the year to celebrate the New Year. Many customers have already started asking for it, but if they don’t delay it again and again, we won’t pay it. Way.” said the textile boss.
When I visited the market before the end of the year, some textile bosses complained that it was difficult to collect receivables this year. The payment that could have been collected in one or two months may have to be delayed for half a month. It can only be said that no matter the current market environment, Whether it’s traders, weavers or clothing merchants, everyone is having a hard time.
However, there are also situations where accounts receivable are relatively good. “Actually, our receivables are quite easy to collect, and there has been no failure to collect receivables for the time being. When selecting customers, we give priority to old customers and new ones.” Customers generally pay in cash for small quantities, and 80% for large quantities, so we generally don’t have to pay back the receivables,” the textile boss said.
It is true that when selecting customers, not all customers can be credited. Generally, you must also observe the customer’s qualifications. After all, you have to live your life.
Vicious cycle, money is always “floating” outside
For textile workers, receivables before the Chinese New Year have always been a headache. In the context of this year’s epidemic, this problem has become more serious. Although policies are relaxed, demand will increase. , but the issue of receivables is still very difficult. At the beginning of the year, the textile people finally got through the days of home isolation and began to resume work and production. They felt that the most difficult days were finally over and were ready to start working hard. But they never expected that this was just the beginning of the difficult 2022.
Not only have these difficult-to-collect receivables made no money, but now there is no trace of money.
“There is too much inventory in the factory, and it’s a bit “hungry”. You can’t make money by selling it at a low price. Things like nylon silk spinning are sold below the cost price. The original intention is to clear the inventory. Now the inventory is When I went down, the money was gone,” the textile boss said. At the end of the year, you have no idea where the money has gone? If 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, and life becomes increasingly difficult.
Now that the policy is liberalized, as demand picks up, textile people must remember the lessons learned from the past and do not blindly follow the market. When taking orders, pay attention to the other party’s credit and their own capital flow.
Seeing that the textile market has reached the end of the year, and in one week’s time, weaving factories of all sizes will start to shut down for holidays, but there is still a group of people who still have to complete their mission even if they stick to the 28th and 29th of the year. , the collection work at the end of the year is in full swing. It seems that this year’s payment is still as difficult as ever.
“The repayments have started long ago, and there are still many accounts that have not been paid back. At this time, customers have made various demands. There is something wrong with the cloth, the color is wrong, and they always want to deduct some money to erase the money. It’s a small change and it’s quite refreshing when placing an order. Money is not a problem since we have to produce first. Now we are criticized for all the things we need money for.” A textile boss saidTao.
We agreed to pay, but kept putting off the payment.
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, making it more difficult to pay for goods. Therefore, it is more difficult for downstream companies to collect payments.
“It is more difficult to get payment for goods this year than in previous years. There is no profit due to the low price, so we rely on the receivables at the end of the year to celebrate the New Year. Many customers have already started asking for it, but if they don’t delay it again and again, we won’t pay it. Way.” said the textile boss.
When I visited the market before the end of the year, some textile bosses complained that it was difficult to collect receivables this year. The payment that could have been collected in one or two months may have to be delayed for half a month. It can only be said that no matter the current market environment, Whether it’s traders, weavers or clothing merchants, everyone is having a hard time.
However, there are also situations where accounts receivable are relatively good. “Actually, our receivables are quite easy to collect, and there has been no failure to collect receivables for the time being. When selecting customers, we give priority to old customers and new ones.” Customers generally pay in cash for small quantities, and 80% for large quantities, so we generally don’t have to pay back the receivables,” the textile boss said.
It is true that when selecting customers, not all customers can be credited. Generally, you must also observe the customer’s qualifications. After all, you have to live your life.
Vicious cycle, money is always “floating” outside
For textile workers, receivables before the Chinese New Year have always been a headache. In the context of this year’s epidemic, this problem has become more serious. Although policies are relaxed, demand will increase. , but the issue of receivables is still very difficult. At the beginning of the year, the textile people finally got through the days of home isolation and began to resume work and production. They felt that the most difficult days were finally over and were ready to start working hard. But they never expected that this was just the beginning of the difficult 2022.
Not only have these difficult-to-collect receivables made no money, but now there is no trace of money.
“There is too much inventory in the factory, and it’s a bit “hungry”. You can’t make money by selling it at a low price. Things like nylon silk spinning are sold below the cost price. The original intention is to clear the inventory. Now the inventory is When I went down, the money was gone,” the textile boss said. At the end of the year, you have no idea where the money has gone? If 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, and life becomes increasingly difficult.
Now that the policy is liberalized, as demand picks up, textile people must remember the lessons learned from the past and do not blindly follow the market. When taking orders, pay attention to the other party’s credit and their own capital flow.
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