When it comes using payment terms to either woo new customers or keep existing ones, most companies appear to treat both the same. That’s the result of an April “quickie survey” conducted by PMMI, or the Packaging Machinery Manufacturers Institute. About 60 percent of respondents offer the same terms to both new and old customers, while 14 percent offer less-rigid terms to existing customers. Another quarter said the terms depended on the company’s credit history.
Payment Terms: New Versus Existing Customers