If your selling a product that can not be reprocessed then you had better not be giving credit on that product. Hay gets turned to manure pretty quickly. Providing a service that has more than your time in it needs to be COD.
I have sold equipment with terms but I always got a good sized down payment. I have done shop work where I carried the labor expense but made the customer pay for all the parts before any work was done. I NEVER give credit on hay or feed. It always has been COD.
I figure the business you lose by not providing credit is not worth having anyway. You can not be the low price seller/service provider and provide credit too.
I have a very good friend that runs a used car lot. He does a lot of the buy here pay here sales. On those cars he gets 20-30% more for the car on top of charging 12-18% interest on the amount financed. He has to work at collection but he is getting PAID for the hassle.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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