Business during a crisis, terms are different than conventional times. We prepay for nearly everything and get prepaid for nearly everything. For sanitizer, ethanol, bottles, caps, etc. For masks, prepay in FOB China.
2000 masks were stolen from one of our shipments of KN95 *somewhere* between China and CA. Why do we demand prepayment? Buyers are ordering their needs from multiple sources and will cancel orders. Walmart would not prepay, we would not sell them. Ace Hardware the same.
Many in the conventional distribution chain choke in a crisis & cannot adapt. Again, crisis rules are different than conventional rules. If you are selling, you need to INSIST on buyers putting skin-in-the-game. You can take 50% up front and the rest on delivery or some variation
If you prepay on the buy side of the transaction and do not get prepaid on when you sell, you are going to get bit hard and deep. In crisis, cash is even more king than ever. Walk away from sales that apply conventional terms during crises. Explain the difference to whom you sell
