{"id":13122,"date":"2020-01-26T15:44:08","date_gmt":"2020-01-26T12:44:08","guid":{"rendered":"https:\/\/www.golaserengraving.com\/blog\/?p=13122"},"modified":"2022-03-25T11:42:40","modified_gmt":"2022-03-25T08:42:40","slug":"advance-payment-a-policy-we-apply-in-the-ordering-process","status":"publish","type":"post","link":"https:\/\/www.golaserengraving.com\/blog\/advance-payment-a-policy-we-apply-in-the-ordering-process\/","title":{"rendered":"Advance Payment, a Policy We Apply in the Ordering Process"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.15″ global_colors_info=”{}”][et_pb_row _builder_version=”4.15″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.15″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.15.1″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n

\"advance<\/p>\n

Advance payment<\/span><\/strong>\u00a0means a customer makes a partial payment of the cost of the goods or services before we begin the production process. It is a deposit or prepayment you make in cash or by cheque on a job you want someone to do for you.\u00a0<\/span>Goleza Designers<\/span><\/strong>\u00a0adopted this advance payment policy to streamline our operations and prevent total loss caused by nonpayment.<\/span><\/p>\n

Most of our clients fail to understand us when we ask for a deposit before we start working on any job. For that reason, we thought it prudent to educate our prospective customers. And it’s the reason why we are sharing this blog post with you.<\/p>\n

Why Do We Charge Advance Payment?<\/h2>\n

There are two main reasons why we require our customers to make an advance payment before we do any job. They include:
♣ Protection against nonpayment
♣ Cash flow management<\/p>\n

Protection Against Nonpayment<\/h3>\n

Our number 1 reason is to protect ourselves against nonpayment if the customer does not turn up to pay on delivery. On several occasions, we received orders and worked on them to completion. But the clients failed to pick the items. In most cases, they are individuals who need one or two products.<\/p>\n

In such incidences, we lost a lot of money. But when customers deposit some money on the jobs, we are to a great extent sure that they will pay the remaining balance upon delivery of the goods or services because they have committed themselves.<\/p>\n

We are in business to make profits, not losses. That is one aspect that our customers should understand. When we make profits, the benefits do not only go to us; they also go to the government because we pay taxes. Not only that, the society in which we live benefits as well through our corporate social responsibility. It is, therefore, essential for us to avoid incidences of loss caused by customers’ nonpayment. And we do this by making it a requirement for every customer to make an advance payment upon ordering a product or service.<\/p>\n

Advance Payment Help Us in our Cashflow Management<\/h3>\n

As jobs come in from time to time, it’s possible to fall short of cash flow to fulfil the orders if we don’t put in place appropriate measures.\u00a0<\/span>Goleza Designers Ltd<\/span><\/strong>\u00a0is not a trading company, but it’s more of a manufacturing business enterprise because we make products like awards, wedding cards, signage and much more.<\/span><\/p>\n

The products we make require us to buy materials to make them. Advance payments enable us to purchase these materials from our suppliers to continue serving our esteemed clients without falling short of cash flow.<\/p>\n

Customers cover some of the cost of production when they commit by paying in advance for the products or services they want. We do not lose if they do not pay in full after completing the job.<\/p>\n

Who Is Required to Make an Advance Payment?<\/h4>\n
\"advance

Advance Payment Policy<\/p><\/div>\n

In principle, we expect all customers to make an advance payment of not less than 45% when they confirm their orders. Clients whom we don’t require to deposit some money before the execution of the job are organisations, companies, and government institutions. Why? It is because they have pre-qualified us as their service provider. They only give us a\u00a0<\/span>Local Purchase Order (LPO)<\/span><\/strong>\u00a0and pay after we have delivered the goods or services.<\/span><\/p>\n

Final Thought<\/h5>\n

Goleza Designers<\/span><\/strong>\u00a0adopted an advance payment policy to protect our business from customer nonpayment and better manage our cash flow. Therefore, we appeal to all of our potential clients to please understand us so that we can continue to serve you.<\/span><\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n<\/span>","protected":false},"excerpt":{"rendered":"

Advance payment\u00a0means a customer makes a partial payment of the cost of the goods or services before we begin the production process. It is a deposit or prepayment you make in cash or by cheque on a job you want someone to do for you.\u00a0Goleza Designers\u00a0adopted this advance payment policy to streamline our operations and […]<\/p>\n","protected":false},"author":1,"featured_media":31943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"[caption id=\"attachment_13160\" align=\"alignright\" width=\"300\"]\"advance Advance Payment[\/caption]

Advance payment<\/strong> means a customer makes a partial payment of the cost of the goods or services before we begin the production process. It's the same as a deposit or prepayment made either in cash or by cheque on a job to be done.\u00a0 Goleza Designers<\/strong> adopted this advance payment policy to streamline our operations and prevent total loss caused by nonpayment.<\/p>

Most of our clients fail to understand us when we ask for a deposit before we start working on any job. For that reason, we thought it prudent to educate our prospective customers. And it's the reason why we are sharing this blog post with you.<\/p>

Why Do We Charge Advance Payment?<\/h2>

There are 2 main reasons why we require our customers to make an advance payment before we do any job. They include:<\/p>

\u2663\u00a0 \u00a0Protection against nonpayment<\/p>

\u2663\u00a0 \u00a0Cash flow management<\/p>

Protection Against Nonpayment<\/h3>

Our number 1 reason is to protect ourselves against nonpayment in case the customer does not turn up to pay at the time of delivery.\u00a0 On several occasions, we received orders, worked on them to completion and the clients failed to pick the items. In most cases, they are individuals who need one or two products.<\/p>

In such incidences, we lost a lot of money. But when customers deposit some money on the jobs,\u00a0 we are to a great extent sure that they will pay the remaining balance upon delivery of the goods or services because they have committed themselves.<\/p>

One thing our customers should know is that we are in business to make profits but not losses. When we make profits, the benefits do not only come to us, but they also go to the government because we pay taxes. Not only that, the society in which we live also benefits through our corporate social responsibility. It's, therefore, essential for us to avoid incidences of loss caused by customers' nonpayment.\u00a0\u00a0And we do this by way of making it a requirement for every customer to make an advance payment at the time of ordering a product or service.<\/p>

Advance Payment Help Us in our Cashflow Management<\/h3>

As jobs come in from time to time, it's possible to fall short of cash flow to fulfil the orders if we don't put in place effective measures. Goleza Designers\u00a0Ltd<\/strong> is not a trading company, but it's more of a manufacturing business enterprise because we make products like awards, wedding cards, signage and much more.<\/p>

The products we make require us to buy materials to make them. Advance payments enable us to purchase these materials from our suppliers to continue serving our esteemed clients without falling short of cash flow.<\/p>

When customers commit themselves by paying in advance some money for the products or services they want, they cover partly the cost of making the items. In case they fail to fully pay after completion of the job, we do not lose.<\/p>

Who Is Required to Make an Advance Payment?<\/h4>[caption id=\"attachment_13161\" align=\"alignleft\" width=\"300\"]\"advance Advance Payment Policy[\/caption]

In principle, we expect all customers to make an advance payment of not less than 45% as they confirm their orders. Clients whom we don't require to deposit some money before the execution of the job are organisations, companies and government institutions. Why? It's because they have prequalified us as their service providers. They only give us a Local Purchase Order (LPO)<\/strong> and pay after the delivery of the goods or services.<\/p>

Final Thought<\/h5>

To protect our business against nonpayment by customers and to effectively manage our cash flow, Goleza Designers adopted the advance payment policy. We, therefore, appeal to all our potential customers to understand us so that we can continue serving them.<\/p>","_et_gb_content_width":"2880","footnotes":""},"categories":[4],"tags":[36],"class_list":["post-13122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-knowledge-base","tag-personal-development"],"yoast_head":"\nAdvance Payment, a Policy We Apply in the Ordering Process<\/title>\n<meta name=\"description\" content=\"Advance payment means a customer pays partially the cost of the goods or services. 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