Dyeing factory notice: In order to speed up the return of funds and ensure the operation of the enterprise, starting from December 21st, all customers will be able to collect the goods with payment!
Everyone familiar with the textile market knows that there are always various credit sales methods 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. Of course, the best settlement method is the printing and dyeing factory. The standard monthly settlement is usually to settle the payment for goods that have been shipped and invoiced at the end of the month, so the financial pressure on the printing and dyeing factory is often minimal.
Not only during normal times, but also at the end of the year, the dyeing factory’s payment method is also very advantageous. Generally, the payment for delivery of goods begins more than half a month before the dyeing factory closes production for holidays. That is to say, the dyeing fee must be settled before delivery, and the payment must be paid in one hand and delivered in one hand, so as to avoid arrears in dyeing fees caused by customers’ financial constraints near the end of the year. But this year’s “pick up with money” is a bit special, it’s very early. You must know that the Spring Festival of 2021 is February 12. As usual, dyeing factories start the holiday in the first half of the month, and production will not stop until the end of January. Pick-up with money should occur around mid-January.
However, this year, many dyeing factories began to receive notices of payment for delivery on December 21, at least half a month earlier than in previous years. . Although the reason given by the dyeing factory is to speed up the return of funds at the end of the year, it is obvious that the information revealed in this advance notice does not stop there.
There is no shortage of orders from the dyeing factory
Require all customers to bring money to pick up the goods in advance, which is actually the dyeing process. It is a manifestation that the factory has a strong voice. Especially in the recent period, dyeing factories have basically ushered in the rush for orders and stocking up from the year before. The orders are not only sufficient but also appear to be full. It is very common for dyeing factories in the market to be stuck for a week at times. When there are the most orders, in a sense, it is also the time when customers are most in need of the dyeing factory. Now, all customers can accept it by paying in advance to pick up the goods.
Funds in dyeing factories are tight
Under the influence of overseas epidemics, this year’s textile market has experienced a decline throughout the year. Orders are not the same as in previous years. Especially in the first half of the year, most printing and dyeing factories spent their time in a state of lack of orders. Most of the things we heard about in the first half of the year were rotating holidays, switching from two shifts to three shifts, etc., from dyeing factories. The operating rate of most printing and dyeing factories has been hovering around 50% for a long time, and only a handful of them are fully operational this year. There are no orders, but various costs such as rent, labor, environmental protection, fire protection, depreciation, etc. are still high. This means that many printing and dyeing factories are losing money in the first half of the year. Now that the end of the year is approaching, it is time to quickly withdraw funds to fill the holes.
The risk of repayment has increased
The poor textile market this year is not just for dyeing factories, but for all Downstream textile trading companies are also extremely short of orders. With the recurrence of epidemics in Europe and the United States, all textile companies are experiencing the risk of possible cancellation of orders. Especially as the epidemic in Europe and the United States has worsened recently, there is a high probability of another wave of order cancellations. Once the order is cancelled, most of the customer’s funds will become inventory. At the same time, overseas end customers are also having a hard time this year, and the speed of repayment is far slower than in previous years. The dyeing factory has doubts about the amount of working capital in the hands of customers. In order to avoid the difficulty of paying off the dyeing fees at the end of the year when customers have no money, they decisively choose to take delivery of the goods in advance.
The holiday may come early
The textile market at the end of the year is full of variables, especially this year Under the shadow of the raging global epidemic, there are more uncertainties. A while ago, there have been rumors in the market that the Spring Festival holiday in the textile industry may be brought forward this year. The delivery of goods with payment has been significantly advanced this year. To some extent, it seems to indicate from the side that the possibility of taking the holiday in advance is very high. The dyeing factory actually did not bring money to pick up the goods in advance. It was just that the holiday was brought forward and the time for picking up the goods was pushed forward.
In general, the dyeing factory’s “delivery of goods with money” significantly ahead of schedule this year is inseparable from financial constraints, whether it is dyeing or dyeing. Both factories and customers have truly felt the scarcity of orders and shrinking profits in the market surrounded by the epidemic this year. All companies are thinking about opening up markets, increasing orders, and expanding profits. However, these ideas are bound to be difficult to realize before the epidemic in Europe and the United States is over. Dyeing factories also lack ways to increase profits. Dyeing factories that cannot raise dyeing fees may be left with the only option of “taking payment to pick up the goods in advance.” </p
