Advance Payments

If your organization is in a position to do so, would it make sense to look at companies that you could make advance payments to which would help their cash flow and allow you to purchase at a discount?

The advantage in doing this for you is you make purchases at lower prices. The advantage to the seller is they get their money upfront.

The disadvantage to you is the potential that the seller wont be able to fulfill your order that you have already paid for. The disadvantage to the seller is the reduced margins and being able to budget these advance payments.

If you are able to afford to make advance payments and can do your due diligence can allow you to create some wonderful win/win situations that benefit everyone.

Have a great day!