It’s mid-January, which is also an important node. Most textile companies will have a holiday on the 15th. In other words, the textile market will enter vacation mode on a large scale, and textile workers who have worked hard for a year will finally have the only long vacation of the year! However, the textile bosses cannot relax at all. There is still the most important thing to do-collect payment!
Recently, a picture has been widely circulated among friends in the textile industry. The picture is about a textile boss’s recent week’s work. In addition to collecting money, it is collecting money. There is a sense of déjà vu that “until the earth explodes, we will not take a holiday.”
For cloth bosses, having receivables is inevitable. It seems to be common in the textile industry and is also a long-standing problem. Compared with previous years, the situation of receivables this year is even worse than in previous years. The amount of receivables is larger, the repayment cycle is longer than in previous years, and it is becoming increasingly difficult to collect. This year, the arrears cycle in the gray fabric market has basically remained at 2-3 months, and even half a year or more, and even bad debts have occurred. Debt on trade orders is even greater than debt on gray fabrics, and has always been so. Most domestic trade orders require a deposit, and the remaining payment is in arrears. This year, the arrears of this part of the payment have also been extended from monthly settlement to more than 3 months, or even longer.
01
Why is corporate debt situation more serious this year?
Why is it more difficult to get payment for goods this year? The biggest problem is that the overall market situation is not good. Clothing retailers have unsalable clothes and reduced cash flow, making it difficult to pay clothing costs to garment factories. As a result, garment factories cannot pay fabric fees to fabric merchants, and finally fabric merchants default on payment to gray fabric merchants. In this way, the entire industry has formed a “sales chain.” If there is a problem with one party’s funds, the entire industry will be in debt.
02
Enterprises accept debts but are unwilling to accept commercial paper
In view of this year’s sluggish market, sales volume is also an important task for enterprises. In order to seize the order, sometimes you have to owe money or collect some commercial bills, such as bank acceptance bills, commercial acceptance bills, etc. Such bills also bring difficulties to enterprises. First, they make payment difficult. Second, they increase financial burdens. Third, they increase management costs and risks.
Wang, who has been engaged in weaving for more than ten years The general manager said: “Our factory rarely accepts such bills, and those that do are rare, only bank acceptance bills. The market is not good this year. In order to reduce inventory and meet new customers, we have large orders but no funds. Just ask them to pay a bank acceptance draft. If they are old customers, they would rather owe money than accept a bank acceptance draft. This kind of draft has a 2% handling fee, which is equivalent to 2% less profit. This year’s profit is already low. Remove these 2%. What else can you earn with a fee of 10%?”
Therefore, when the market is bad, companies are more willing to accept debts instead of commercial paper. This also explains why arrears have increased this year.
03
Different companies have different debt amounts and account periods
In the editor’s visit and research, we also found that companies that have transformed in recent years, updated their machines, and continuously developed new products have good debt problems and are relatively easy to collect payments; on the contrary, the speed of product updates is slow , companies with strong substitutability have more receivables and are more difficult to collect. This shows that companies that follow the old tradition are relatively passive in the market, have no say, and are easily “led by the nose” by customers. Companies with novel products that are difficult to replace have a stronger voice and can independently screen customers and control the amount of debt owed.
In short, if you want to reduce receivables, you must improve the attractiveness and innovation of your own products, take the lead in your own hands, and have enough Ability to “say no” to customers who want to owe money! Finally, the editor hereby appeals to textile workers who have debts to pay back their money promptly and voluntarily. It is not easy for anyone, be considerate of each other, and celebrate the New Year happily together!
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