It’s the end of the year again, and many weaving companies and traders are beginning to plan to collect payment for goods before the end of the year. As the saying goes, business is difficult to do and debts are difficult to recover. No matter whether he is a relative or a friend, if money is involved, the boat of friendship will capsize. Therefore, there is less than one month left before the Spring Festival, and many cloth bosses in the editor’s circle of friends have begun to post pictures and post to their circles of friends, with friendly reminders: It’s time to collect money again!
As Dickens said: It was the best of times and the worst of times. This sentence is most suitable to describe the current small and medium-sized textile enterprises.
The so-called “good” means that with the deepening of ecological civilization construction, the continuous improvement of environmental protection laws and regulations, and the continuous strengthening of market supervision and law enforcement, the textile industry may develop in an orderly manner through the survival of the fittest in the market after experiencing overcapacity for several years.
The so-called “bad” refers to its own problems. The market competition mechanism is not standardized. In particular, the low-price competition of some large manufacturers disrupts the rhythm of the market and makes it difficult for some small and medium-sized enterprises to survive. At this time, ensuring smooth cash flow has become a key to business operations!
Compared with previous years, companies this year are more cautious in terms of accounts receivable. A relevant person from Wujiang Runze Textile Co., Ltd. said: “This year, the general environment is not very ideal, so we are more cautious in signing orders. Under normal circumstances, old customers can get goods in arrears, while new customers can get goods in cash. After all, old customers have cooperated with each other for many years and know the basics.” Boss Chen, another fabric trader in Shengze, also said: “Especially in In the past two months, the price of raw materials has skyrocketed, and the dyeing factory has also been slow to ship goods, so we have implemented a plan to get goods upon payment. On the one hand, the price of raw materials changes every day, which has a great impact on us. On the other hand, we are also afraid of the end of the year. The payment is too slow, affecting the company’s operations next year.”
A survey of 150 textile companies at the end of the year by China Silk City Network showed that the pressure on receivables of textile companies was still relatively high in 2016. More than half of the companies had receivables exceeding 30% of annual sales, and it is said that the account period is generally within 3 years. A month or more.
Compared with the same period last year, the results of this survey show that the overall receivable situation of textile enterprises this year has improved slightly. Among them, the proportion of receivables accounting for more than half of annual sales has significantly shrunk. On the one hand, companies have shortened the payment cycle; On the one hand, it is to reduce the signing of some orders to avoid some potential threats.
“Begging for money must be the biggest headache every year from the beginning to the end of the year. But as entities like us, we have to face these problems. After all, there are orders from some old customers. If we don’t accept them, we are afraid of losing customers. Once we receive the funds, we will withdraw them. After all, it is slow, and the cost this year has increased by at least 5% compared with previous years, so the financial pressure is even greater.” said Boss Shen of Shengze Wenzhou Business District.
Judging from the current business operation situation, there are relatively abundant orders for printing and dyeing factories in the market. Most of the manufacturers focus on rushing for delivery. Weaving manufacturers and trading companies mostly focus on small orders, and there are many sampling inquiries. Due to unstable prices, downstream customers Ordering is also more cautious, but generally speaking, although the market before the end of this year is “chaotic” than in previous years, many merchants have already reduced their production load and shifted their energy to the issue of payment collection. After all, in the next month, there should be The situation of money collection will affect whether they eat dirt or meat during the Chinese New Year!
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