Jump to content

Cash flow and distributors


Recommended Posts

This may sound like a very basic question, but once the distributor picks up the product... When do you get paid?   90 days?  When product sells on retail selves? What's typical?  I'm trying to get an idea how much i will need to get for working capital.

Link to comment
Share on other sites

30 days is pretty common.

Usually, distributors are paid COD by retailers. Distribs are going to have to carry some of your inventory for a period of time...we are finding 30-60 days to be common on that end. We haven't had a whole lot of interest in distribs wanting to do 15 days because of their inventory levels. As long as their sales cover their payables to you, you should be good to go.

This is just our experience so far. I'm sure many others are having success at negotiating terms lower than 30 days.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...