Accounts receivable have always been a concern for textile bosses. I would like to ask, which textile boss does not have a “history of accounts receivable” with blood and tears? Especially this year, due to the seriousness of the overseas epidemic, a large part of the payment may not be recovered, and there have even been cases in the past where “the goods arrived, but the customer went bankrupt.
The textile market has serious debts this year
Both weaving manufacturers and traders are more or less in debt this year, and the worse the market situation, the longer the debt cycle will be. This situation is even worse this year.
A weaving boss with more than 60 machines said helplessly: “Our new customers generally require full payment. Old customers can pay a 30% deposit, but the subsequent payment It must be paid within 3 months. Although it is said that, some old customers also default on the payment and will find faults in various ways just to pay less. “
A person in charge of a trading company revealed: “Over the past few years, we have felt that foreign trade debts are much better than domestic trade, but this year foreign trade is not good and the order volume is small. Therefore, we have focused on domestic trade and now we clear the accounts every month. We are afraid that it will be difficult to collect the accounts at the end of the year. After all, no one wants to owe money, but with the market this year so bad, everyone doesn’t have much cash on hand, and funds are tied up in inventory. If there is no demand, no one will buy it, and there will be no way to cash out the inventory. “
“In mid-March, 90% of our foreign trade customers suspended their orders. We had already made some fabrics in the dyeing factory, but they didn’t want them anymore, so we had to take the fabrics back and put them in the warehouse for inventory. The deposit was only 30%. “A trader said helplessly.
From clothing to textiles, the biggest problem encountered by enterprises should be money shortage. The epidemic has affected consumers’ purchasing power. Clothing If it cannot be sold, there will be no income. Starting from the clothing company, it is difficult to turn over funds, and the funds are tied up in inventory. As long as there is a problem with funds at one end of the industrial chain, the upstream payment will not be cleared
Weaving companies can be said to be under the greatest pressure. Their upstream raw material manufacturers need to pay off in cash, but downstream traders can default on arrears. , of course, there are cases of full payment, but this year there are fewer, and most customers have been in arrears for longer than in previous years, so the funds of weaving companies are very tight during this period. It is understood that there are many companies in the market currently. Manufacturers have changed the monthly payment of wages to three months. Some also have rotating holidays and holidays, in order to reduce the pressure on funds.
State Council The payment must not exceed 60 days! Enterprises must not be forced to accept commercial bills!
The phenomenon of difficulty in recovering debts has long been common in the textile industry. The state has This phenomenon has also issued a warning and is determined to combat it. On July 14, the State Council officially announced the “Regulations on Guaranteeing the Payment of Small and Medium-sized Enterprises”, requiring the establishment of a long-term mechanism to solve the problem of arrears of payments to small and medium-sized enterprises. It will be effective from September 1, 2020. It is required that the payment should not exceed 60 days! Enterprises must not be forced to accept commercial drafts!
For many small-scale textile companies with poor financial resources, although there are no large arrears, and in many cases, the customers do not default on malicious intent, the arrears of wages of tens or millions plus the arrears of several million The interest generated every year is enough to drag them down, and some companies even go bankrupt in the process of debt collection.
Editor’s Note
This year is a special year, no matter it is Clothing, trading and weaving companies have all been disrupted by the epidemic, resulting in less abundant capital chains than in previous years. Therefore, tight capital chains are a common problem this year, which may also make it difficult for companies to collect accounts at the end of the year. Bigger than in previous years. But no matter what, as long as we get through this most difficult period, the situation may change!
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