Electronic Cigarettes International Group Ltd fka ECIGQ

[hawkeye612]

I have never heard of a vendor requiring up front cash on purchase orders unless their credit was not sufficient to provide 30 day terms (that would not be the case through the channels ECIG is distributing through) Some large companies negotiate for 60 day terms have even heard of 90 day terms. In business it is typical to offer a discount for prompt payment 2% 10, net 30 for example. Typically a company that is distributing through the channels that ECIG does have a large credit line to offset their inventory and operating expense. The fact that Wal Mart was on a consignment basis was really poor terms for ECIG. Would really be interested how the invoice would have been triggered then, when the product was reordered I suppose. I have dealt with several large companies with terms and would never have agreed to supply inventory on consignment unless it was a product I could not move. Consignment really hurts a companies cash flow especially one that is already strapped financially. Would be much better in my opinion to offer a large enough discount, 5% 10 days net 30 for example to give distributors an incentive to pay quickly, cash flow is king especially in startup businesses.