Introduction: Credit sales have always been popular in the textile industry, especially in the fabric industry. In recent years, almost everyone buys fabrics on credit. Credit is risky. Without credit, it will be difficult to occupy and enter the market, and opportunities will pass by. This is a long-established fact in the textile industry. If the industry is booming, most people will usually repay the money at the end of the year. However, this year’s situation, although it is only October, seems to have obvious signs. The sale of collateral due to non-payment of owed money is not uncommon. I believe everyone knows Payment collection this year will still be a big problem!
Many textile people have noticed that since October, roadside sales offices have begun to post notices: It is not the price of fabrics, but the textiles for clearance sales. Why do these fabric merchants start the business of terminal sellers? Is there going to be a transformation? In fact, everyone knows that it is said to be direct sales from manufacturers. The bosses who bought the fabrics did not pay back the money and mortgaged the money for the goods.
If the textile industry is not in good condition, such problems are bound to occur, and such problems will continue to expand in size and scope. It is no exaggeration to say that credit sales have become the last straw for Boss Bu!
At the end of the year, I have to take inventory of the fabrics I have sold for a year to see if I have earned more or less, so I have a good idea. The payment for goods owed on credit must be collected before the end of the year, otherwise it will be even more unfair if the accounts are not collected until the end of the year. When the end of the year comes, it’s the time to worry about collecting debts. Customer performance is good, but accounts may not be easy to obtain. If the harvest is not good, it will be even more difficult to pay the bills.
In recent years, the overall situation of the textile industry has not been good. Clothing companies have been losing money, which has led to many problems. There is no hope of collection and defaults on accounts are common. Even wealthy bosses will use various excuses to delay payment, saying that the fabrics used are of poor quality, etc. Boss Bu couldn’t get his money back, and the dealers were forced to default on their debts. There were all kinds of bad and bad debts, and the troublesome vicious cycle started again. Precisely because of the disadvantages of credit sales, some manufacturers also insist on taking the cash route. However, as for the implementation effect, at the end of each year, these manufacturers are still struggling to survive! And this year, they have to be even more cautious in collecting accounts, walking on thin ice.
Editor’s note: Will this year’s collection of payments reappear the “old normal” of the past few years: several salesmen from different manufacturers squatting at the buyer’s home to collect payments at the same time? It’s scary to think about it. People are worried, but I hope our cloth selling business will be smoother next year! Keep doing it and cherish it!
But the industry has developed to this point. For many manufacturers, it is not easy to take the cash route, right? Especially fabric companies, they have never had pricing power. Cash payments for raw materials have been strong, and dyeing fees have soared. They cannot deliver goods. Look at the faces of the dyeing factories. Similarly, a large amount of excess production capacity and a scarcity of orders have turned the cloth bosses into middlemen at the mercy of others.
