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Invoicing before goods received

I read many posts on this matter, but I am still not 100% sure who is in the wrong. I am a engineering supplier to a client, they take 3 days to process invoices. I have a 30 day account with them, which basically means the first day of the second month after invoice received. I have a supplier that invoices as soon as their portion of the job is complete, so if I get something from them on the last day of the month, I have to pay them in 30 days, but I will only get paid after 60 days effectively. I have had numerous discussions with them to try and let them see my point, but still even if I don't collect they still proceed to invoice accordingly. I cannot invoice before I deliver and in truth prefer not to? Would like to hear some thoughts on this matter


Steve Sheridan
Title: Associate
Company: Dean Lewis Associates
(Associate, Dean Lewis Associates) |

I think this is where offering a discount for early payment helps. Somehow you need to have the cash to cover any difference in timing. By offering a discount if invoices are paid within 10 days or so, you'll get the cash quicker to pay your bills. You could even ask your supplier if they offer a discount, so that if your customers pay you within 10 perhaps you get 15 days from your suppliers in which to pay early.

(Controller) |

It's called working capital. You either borrow it or sell ownership to others in order to get it or you put your own money into it. These invoicing timing differences are inevitable. All you can do is make sure you invoice as soon a legally possible and often.


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