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 Lifetime of Farm Machinery - by Joe Michaels. I am a mechanical engineer by profession, specializing in powerplant work. I worked as a machinist and engine erector, with time spent overseas. I have always had a love for machinery, and an appreciation for farming and farm machinery. I was born and raised in Brooklyn, New York. Not a place one would associate with farms or farm machinery. I credit my parents for instilling a lot of good values, a respect for learning, a knowledge of various skills and a little knowledge of farming in me, amo
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