Money doesn't grow on trees around here

How much grace should a long-term business relationship buy you?

We’ve worked directly with one trailer manufacturer for more than 10 years, and the manufacturing side of our company has done business with them for more than 20.

Since Covid, that business has dropped off dramatically.

Their second-to-last order was about three years ago. They had 30-day payment terms with us because of our long history together.

That invoice took a little over 45 days to get paid.

Their last order was two years ago.

That 30-day invoice took more than 90 days to get paid.

Once could be a fluke. Twice in a row starts looking like a pattern.

Today they contacted me for current pricing on our G2 system. I happily sent it over. I also let them know their account is now prepay.

No hard feelings. No argument. No lecture.

They’re a multimillion-dollar company. We’re a much smaller company. I don’t think a small business should be expected to finance a much larger company’s purchases for 60 or 90 days.

I’ll give people and companies the benefit of the doubt. I’ll extend some grace, especially when we have a long history together.

But don’t burn that generosity, disappear for two years, and come back expecting the same terms.

Was changing them to prepay too harsh?

I don’t think it was.