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Re: Questions on cash flow and buisness?


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Posted by ericlb on August 18, 2009 at 05:38:05 from (75.107.64.57):

In Reply to: Questions on cash flow and buisness? posted by jocco on August 18, 2009 at 04:54:14:

i never pay up front,but i do pay all my bills, to me a business trying to get customers to pay first tells me the business doesnt have enough money to operate, its being run out of its owners back pocket, we have had a decade of fly by night contractors in the county doing that some didnt even hold business licences, they took all the money up front so they 'could purchase building materials' [ 30 % up front is not unusual for this] the problem is several contractors took the money and ran and did it to several people, thats a nice wad of money and its very hard to procecute these people as they tend to stay mobile , for gravel, [ im in the gravel hauling business] paying up front is a good way to go broke, the gravel is sold by the ton at the crusher how much gravel gets in a load at our place depends on how full the loader operator fulls his bucket ,the loaders are so big that it can vary by several tons if you sold a "load" containing a average 14 tons, but the loader operator dropped 16 on the truck you would owe for the extra gravel, since you had your customer pre pay you have no way to charge him for the extra gravel, and backing up to the pile again and blocking 8 to 10 other rigs trying to get loaded while you try to drop 2 tons off yours is a good way to get beat time is money and these guys have to make their living too


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