About Industrial Gases and Liquids

Net 30?

In the US at least, most industrial supplies and parts are sold on the basis that the buyer will pay in full by the 30th day after receipt of the material. The great game, of course, is how part you can stretch those 30 days. A major corporation that I've consulted for routinely makes their 30 net payments between 90-100 days.

Ours is net 90 (for small scale industries we pay in the net 30 for both net 90 and net 30)

Our finance department is highly innovative in the methods of stretching the nets. .

Too bad you didn't use 2% 10^th prox net 30 as terms.

We too have a few customers that routinely abuse our terms, in some misguided belief we are a financial institute, not a material supplier.

Once I worked for a little firm without any cash reserves. We had a big customer who would pay the 2% discount about 35 days. We had to just swallow the loss, but there were some lean months!

That is the finance department (I don't know it is same every where or not )

Psst: I have seen we end up paying more (some times when in emergency we buy with straight cash, i have seen the difference.

And frankly we end up paying more (vendors are smart and the cost of delay is included in the quotation with all the risk factor ) But difficult to educate the finance.