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 - A Cautionary Tale - by Ian Minshull. In the early 1950s my father bought an Allis Chalmers B and I used it for all the row crop work with the mangolds and potatoes, rolling and the haymaking on our farm. The farm and the Allis were sold and I have spent a lifetime working on farms throughout the country. I promised myself that one day I would own an Allis. That time event
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