Goodbye 7 Days, Hello 30 (New Credit Terms)

This is an announcement to let all our suppliers and potential suppliers know that our credit terms are moving from the current 7 days terms to 30 day terms. This is due to new clients with new contracts, which means we will no longer be able to fund 7 day terms, in order to protect future growth of the business.

Therefore, any jobs completed for courier expert from here forwards, will be on 30 days. For any jobs already completed up until today, we will still honor the original 7 days.

The good news it that we are busier than ever, not just with retail jobs, our normal sameday jobs have been steadily increasing too, so there is certainly an upside to the new contracts we have taken on :)

If anyone has any questions, please message me through the mtvan website.

Andy

Does this apply also to your shuttle service?

Gas Motorcycle Couriers said:

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Does this apply also to your shuttle service?

Yes, it applies to any job we sub out.

We think 30 days is a fair compromise, as in many cases, we will be paying out to the sub contractor, before we actually get paid.

Have to look on the bright side then, do a couple of shuttle jobs and wait 30+ for your 8 squids jackpot :-(

moray couriers said:

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Have to look on the bright side then, do a couple of shuttle jobs and wait 30+ for your 8 squids jackpot :-(

Everything will be paid in 30 days or less.

Courier Expert said:

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Gas Motorcycle Couriers said:

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Does this apply also to your shuttle service?

Yes, it applies to any job we sub out.

We think 30 days is a fair compromise, as in many cases, we will be paying out to the sub contractor, before we actually get paid.

Nothing unusual about that.

That is why Courier Companies exist so that a subby who accepts the courier companies rates gets his payment before he needs to pay for the fuel.

Jobs where the subby names his own price are different and should be paid before the end of the month following the month of invoicing. i. e. normal 30 day terms.

Edit...

Nothing unusual about that.

That is why Courier Companies exist so that a subby who accepts the courier companies rates gets his payment before he needs to pay for the fuel i.e. By the end of the week following the week of invoicing. 7 day terms.

Jobs where the subby names his own price are different and should be paid before the end of the month following the month of invoicing. i. e. normal 30 day terms.

I do agree subbies should be paid as soon as is realistically possible, as they have fuel and other expenses to cover. Which is why we will make sure all invoices are paid on or before 30 days.

However said that, failing to plan, is planning to fail. This is a sensible decision to cope with rapid growth and new money coming in on longer terms, so we want to remain financially stable. There is no point taking cash flow risks, as in the long run, it won't help anyone.

I think what 021 is saying is because you dictate the price to the subbie should therefor should be paid in 7 days and not 30, 30 are for those who have put forward an offer in which you accept, along with the terms.

Thats why I asked about your shuttle payment terms..

Gas Motorcycle Couriers said:

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I think what 021 is saying is because you dictate the price to the subbie should therefor should be paid in 7 days and not 30, 30 are for those who have put forward an offer in which you accept, along with the terms.

Thats why I asked about your shuttle payment terms..

We don't dictate the price of anything we advertise on mtvan, all offers are considered. Of course the price is set for members, but we are in the same position, the price is dictated by the customer.

One of my customers has been told by his customer they now pay on 120 days

The moderation (censorship) has defo gone to pot on here recently

Andrew based on your standard rates dont waste a phone call please your rates were fine for 7 day terms at 30 its not worth it

moray couriers said:

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The moderation (censorship) has defo gone to pot on here recently

It seems like there's one rule for one and one rule for the others. The accusations put by CE to Rob of Speed are outrageous! I remember Rob was Sin Binned for a lot less than this.

Sounds like your business really is on the up now CE!

Lucky you've gained the trust of so many subbies by paying within 7 days up to now.

You might have found it difficult finding subbies willing to do so many jobs on 30 days terms right from the start!

Scott.

Andy,

Is there a reason why you don't just give all this new work to all the people who paid you for a protected area via the CRV franchise?

Scott.

Scott Reid said:

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Andy,

Is there a reason why you don't just give all this new work to all the people who paid you for a protected area via the CRV franchise?

Scott.

Anyone who was under the old CRV brand, was transferred to the new Courier Expert membership last year.

Scott Reid said:

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Sounds like your business really is on the up now CE!

Lucky you've gained the trust of so many subbies by paying within 7 days up to now.

You might have found it difficult finding subbies willing to do so many jobs on 30 days terms right from the start!

Scott.

For 3 years, we built a loyal base of couriers on Courier Exchange on 30 day terms and more recently on mtvan on the same 30 day terms. Obviously I can understand that some people may not be able to wait that long and may choose only for those who offer faster payment terms, however I am hoping most will accept that 30 days is an industry standard.

Make it 60 day's, most people won't mind.

Courier Expert said:

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Scott Reid said:

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Andy,

Is there a reason why you don't just give all this new work to all the people who paid you for a protected area via the CRV franchise?

Scott.

Anyone who was under the old CRV brand, was transferred to the new Courier Expert membership last year.

Fair enough, but if I had paid you for a specific area under either the CRV or Courier Expert franchise then found you subbing out work to someone else I'd be a little bit upset.

Scott.

RGM Courier Services said:

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moray couriers said:

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The moderation (censorship) has defo gone to pot on here recently

It seems like there's one rule for one and one rule for the others. The accusations put by CE to Rob of Speed are outrageous! I remember Rob was Sin Binned for a lot less than this.

In my opinion, Speed should be banned for life for posting that Twitter link, he's overstepped the mark.

The personal lives of my members of staff is not something that should be posted on here, neither should Speed be taking such an unhealthy interest in their lives outside of work. I don't accept any of his excuses.

Scott Reid said:

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Courier Expert said:

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Scott Reid said:

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Andy,

Is there a reason why you don't just give all this new work to all the people who paid you for a protected area via the CRV franchise?

Scott.

Anyone who was under the old CRV brand, was transferred to the new Courier Expert membership last year.

Fair enough, but if I had paid you for a specific area under either the CRV or Courier Expert franchise then found you subbing out work to someone else I'd be a little bit upset.

Scott.

Nothing was forced on anyone, they were offered favorable terms to switch.

Legrys Express Ltd said:

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Andrew based on your standard rates dont waste a phone call please your rates were fine for 7 day terms at 30 its not worth it

I believe you have been with us a while? If so, message me through here about rates.

My only issue is that your quantity of small jobs posted and paid for rapidly, sudden growth and change of payment terms seem to be following an all too familiar pattern that I have seen with various other companies on this forum and others.

Scott Reid said:

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My only issue is that your quantity of small jobs posted and paid for rapidly, sudden growth and change of payment terms seem to be following an all too familiar pattern that I have seen with various other companies on this forum and others.

Understandable. However matching our customers terms makes us more financially stable, not less.

I agree with that, yet since Courier Expert has been trading as CRV Couriers since 2006 I would have assumed that your business would already have been financially stable!

A good point and we are stable. My business has been running for 7 years and I expect it to be going for another 7 years and longer.

However the mathematics of taking on a significant volume of new work, from new customers with 30 day credit terms, and then paying out on 7 days, simply do not add up. We have done our forecasts, we can see a potential problem on the horizon, so we are taking action to avoid it now, before it gets the chance to become a problem.

I'll watch with interest.

I've heard factoring is a reasonable way to fund expansion if your business plan isn't good enough for the banks to lend you money.

Dash Despatch said:

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I've heard factoring is a reasonable way to fund expansion if your business plan isn't good enough for the banks to lend you money.

You are having a laugh surely?

Dash Despatch said:

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I've heard factoring is a reasonable way to fund expansion if your business plan isn't good enough for the banks to lend you money.

You are aware that if the factoring company doesn't get paid they want the money back aren't you? It has to be the worst form of lending just in front of loan sharks

MK Bikes said:

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Dash Despatch said:

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I've heard factoring is a reasonable way to fund expansion if your business plan isn't good enough for the banks to lend you money.

You are aware that if the factoring company doesn't get paid they want the money back aren't you? It has to be the worst form of lending just in front of loan sharks

While I tend to agree with you Tony I know of at two big hitters so to speak who are well known and have fantastic reputations for payment over the last 5/6 years who seem to use it to their advantage.

I wouldn't touch most factoring companies with a barge pole! And the idea of borrowing off Peter to pay Paul is not a sound financial plan, best to balance the books with the cash you have, in my opinion :)

You may well be receiving some invoices from factoring companies now your subbies are on 30 days, although 20% off their invoices to you must surely be below cost

C'mon guys the factoring plan was tongue in cheek... for goodness sake !!

More to the point - why does the expert expect the members/subbies to fund his expansion - if it's a sound plan the bank or investors should carry the risk.

No one is funding our expansion, we are simply paying out at around the same time the money will come in. We won't be sitting on any funds, it's just sensible mathematics and cashflow forecasting.

I think 30 days is also reasonably competitive with what else is out there. The main issue for most people, is paying out when you say you will, which is what we will do. Instead of claiming 30 days and then stretching it to 60 or longer with various excuses etc.

Courier Expert said:

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No one is funding our expansion, we are simply paying out at around the same time the money will come in. We won't be sitting on any funds, it's just sensible mathematics and cashflow forecasting.

Yes they are, your members and sub contractors are.

You made a great show of 7 day payment - now you are paying 30 days because your cash flow cannot stand the 'continued expansion'.

Your company is not funding the expansion (by overdraft or other borrowings) therefore it is being funded from extending your credit with suppliers.

I'll rephrase that as I don't know what is going on behind the scenes;

Your company is at least PART funding your expansion by extending your credit terms with suppliers

Courier Expert said:

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No one is funding our expansion, we are simply paying out at around the same time the money will come in. We won't be sitting on any funds, it's just sensible mathematics and cashflow forecasting.

I think 30 days is also reasonably competitive with what else is out there. The main issue for most people, is paying out when you say you will, which is what we will do. Instead of claiming 30 days and then stretching it to 60 or longer with various excuses etc.

The subbies who do the work for you are funding your expansion!

Stop worrying about the Courier Expert, and get on with running your own business or get a life this thread like lot's of others is going nowhere, if people don't agree with the Expert simple, don't get involved.

Hi Gary,

I don't think any of us are worried about Courier Expert.

I get the feeling that he has almost finished spending his 5K convincer and is now ready to start reeling in the fish!

No reason why an established courier company should not look at factoring the "Retail" side of it's business so that 7 day terms could be continued during a period of rapid expansion - That is exactly what invoice factoring does.

Unless the margins are so slim that it cannot afford the fees?

moray couriers said:

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The moderation (censorship) has defo gone to pot on here recently

Apologies, this thread has now been cleaned up to what is useful/reasonable/constructive.