Why we don't usually accept purchase orders
Tue 18 Nov 2008, 09:28 AMTweet
by Ben Langhinrichs
In general, Genii Software does not accept purchase orders as payment, although we will make an exception on occasion, usually for a government agency that can't operate any other way. I had a reminder today of why this policy was put in place. We had a government agency start using CoexLinks in June on an evaluation license. They got approval for full payment on an expedited basis in early June. Due to some support questions we wanted to reassure them about, it was not until July 8th that they sent a purchase order and we sent a license. The terms were "Net 30", but with an understanding that the payment would be expedited since we don't usually accept purchase orders and were bending our rules to meet their needs.
The "expedited" payment arrived yesterday, November 17th, four months and nine days later. Over five months since they started using the software in production to solve their issues.
That is why we have the policy.
Copyright © 2008 Genii Software Ltd.
What has been said:
729.1. Scott Marchione (11/18/2008 08:19 AM)
You got the Federal Government to pay you in 129 days?? Wow, that's blazing fast...... for them!
729.2. Ben Langhinrichs (11/18/2008 08:31 AM)
Scott - Sadly true. In this case, it was not the U.S. government, but a foreign government, but I think the same concept holds true. I should be glad I got paid before I retired.
729.3. Turtle (11/18/2008 08:34 AM)
Yeah, governments have been known to actually drive some companies into bankruptcy waiting around to get paid on very large orders.
729.4. Eric Mack (11/18/2008 08:39 AM)
Many years ago, I did sole-source contracting for the Air Force. At the time, payments ran 30-90 days (or more). Then, I took a course in federal accounting to understand DAR and FAR. After that, I figured out the system and found that I could get paid fairly substantial checks in 7-10 days.
That was many years ago - pre-internet - so I'm sure things have changed but I'm sure it's still possible. One trick was to offr a 1% for net 20 or 30 discount which (at the time) by law they were required to honor. Worked great.
I hope this helps. See you at Lotusphere.
729.5. Bruce Elgort (11/18/2008 05:02 PM)
We do accept PO's and so far so good after a year in business. I am guessing that as we continue to grow we may run into some of the problems you discuss. Thanks for sharing.
729.6. Adam Osborne (11/19/2008 01:26 AM)
That is horrible. One (and probably the only) thing the Australian government did a few years back to support small business is to allow us to charge interest for payments over 30 days -it's the law, very cool.