FACTORY

 

FACTORY PAYMENT 

It’s risky to take a new order from them while they still owe you money, but since you need cash flow, you could use this opportunity to negotiate better terms. Here’s what you can do:  

### 1. **Secure the Old Payment First**  

- **Demand immediate payment** for the overdue amount before accepting new orders.  

- Offer **installments** if they can’t pay all at once, but require a **significant upfront payment** now.  

- **Leverage their need for new orders**—tell them you can only proceed once they clear at least part of their debt.  

### 2. **Negotiate Better Terms for the New Order**  

If they pay part of the old debt and you still want to proceed:  

- **Advance Payment:** Require at least **50% upfront** for the new order.  

- **Shorter Payment Terms:** Ensure the balance is **paid within 1 month** (since that’s your factory’s limit).  

- **Penalty for Late Payment:** Add a late fee clause in the agreement.  

- **Smaller Batch Orders:** Instead of one big order, break it into smaller ones where they must **pay before receiving the next batch.**  

### 3. **Reduce Your Risk**  

- If they refuse upfront payment, **offer less quantity**—just what you can afford to risk.  

- Consider **a third-party escrow service** if they’re open to it.  

### 4. **Worst Case – Walk Away**  

If they won’t pay the old debt and refuse better terms, it’s a **red flag**. They might delay payments again or never pay at all. In that case, **don’t take the order**—it’s better to focus on reliable clients.