It's tricky, a new store wants to order and you want and need that order but what payment terms do you offer without scaring the retailer off?
Best policy here is honesty.
Firstly, It's too risky giving anyone you haven't dealt with before any credit terms, we just don't do that. You can ask for a deposit ( 25% - 33% or 50% of the order value) but they may not go for that, then what?
You can offer proforma terms, which means you'll commit to producing the order but won't deliver the goods until full payment is cleared funds in your account. The risk, we'll you'll be paying to have the goods made and delivered to you. You'll then call the store and request payment. Depending upon their cashflow at that time, they may pay and take delivery or they may stall. The longer they stall the greater the risk as your left with goods in your warehouse until they take it in. This could last for weeks, all the time the selling season for that merchandise is getting shorter until they do take it in. It's almost impossible reselling someone else's order. Proforma is a safer bet than offering credit terms at the outset but still has it's risks.
Best bet, take a deposit and request proforma for the balance. Retailers are unlikely to walk away from a deposit they have placed. If they flatly refuse to do this, consider carefully if you really want to take this order or not, personally I would walk away.
Department stores are a different kettle of fish entirely and will have their own settlement terms.You need to ask the buyer(s) what their settlement terms are before accepting any orders. You may be suprised by their terms and may not want to proceed on their terms.
Rgds
Renato
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