Quote:
Originally Posted by BruceLee
GMan, my point is that anytime someone is offering to pay you fast, its making up for something else thats lacking. Business pays on 30 to 60 day terms. Stippers on the pole get paid the moment they finish thinking that they're making money because at the end of the night they have a fistfull of ones.
Most business does pay in 30 days, but not all. I have done business with a couple of brokers who pay when I give them the bills. If they are mailed then they send a check the same day with NO discounts. Most major companies will offer some sort of discount if they receive their money early. It helps cash flow and prevents them from having to borrow money in order to pay bills and keep the doors open. Some of the largest corporations in the world use factors. No business can survive without cash flow. Some companies that offer the discounts will raise prices to offset the added cost. With brokers it makes them a little more profit. I would expect that many brokers who offer quick pay with a discount are mostly passing along their cost of borrowing or factoring their receivables.
It would be much better if we could all operate with cash. We have become addicted to credit. It can help us to bridge the gap between the time when we receive products or services and when we are paid. It would be much better if we could receive our money the same day as when we delivered the loads and without any sort of discount. If you don't like discounting your invoices then raise your haul rate to compensate for the discount. You will still receive the same amount of money as if you waited 30-60 days.