Nobody chooses a protection board supplier on payment terms, and quite a lot of projects run into trouble because of them anyway. Board is bulky and relatively low-value per cubic metre, which means freight is a big share of cost and suppliers are cautious about who they extend credit to on a first order.
How first orders are usually handled
Pro forma or part-payment on first order is normal for a new customer, with credit terms following once there is a trading history. That is not a judgement on creditworthiness so much as a function of the product: shipping a pallet of board is expensive to reverse if the payment does not arrive. Expect it and plan for it rather than being surprised.
What to ask for on repeat work
Standard terms – 30 or 60 days – once trading is established, and a clear statement of whether freight is included. On a programme with monthly call-offs, agreed terms beat negotiated terms, because the administrative cost of re-agreeing them each month is larger than any benefit.
Freight terms matter more than they look
Board is light but bulky, so the freight cost per square metre is significant and it varies enormously with delivery pattern. Ten small deliveries cost much more than one large one. Ask whether the price is delivered or ex-works, and whether there is a free-delivery threshold – consolidating deliveries to hit it is usually the single easiest saving available.
Retention and final payment
On long programmes, agreeing that the final call-off is settled after the last delivery rather than held against programme completion avoids a stale debt at the end of the job. Worth stating early, because protection is usually the last thing delivered and the first thing forgotten.
Where terms should not drive the decision
If the choice is between a board that suits the floor with tighter terms and a cheaper board with generous terms, take the first one. Protection is a small line against the cost of a floor repair, and the commercial terms are not where the money is.
Why freight terms matter more than credit terms
On a bulky, low-value product the delivery cost is a real proportion of the total, and a misunderstanding about whether the price is delivered or ex-works is a larger sum than a month of credit. Get the freight terms in writing on the quote, including what happens on a failed delivery – a lorry that cannot get in and has to return is usually chargeable, and it is worth knowing before it happens rather than after.
Matching terms to the programme
Protection is bought early in a programme and paid for before the client pays you, which makes it a cash-flow item rather than just a material cost. Standard terms on a first order are usually payment on delivery or thirty days; on a repeat relationship, sixty days is often achievable and worth asking for.
Two things to check before signing. Whether the supplier requires a deposit on made-to-order items – printing and cut-to-size cannot be resold to anyone else, so a deposit is normal and reasonable. And whether credit is insured or subject to a limit that will stop a large order going out at the moment you need it. A credit limit that is fine for a twenty-panel order will block a two-hundred-panel one if nobody raised it in advance. Where a hire model is used instead of purchase, the deposit and write-off question in deposits and write-off allowances in protection hire is the one that causes arguments later.
What we can do
We quote PP honeycomb protection board delivered or ex-works with the freight threshold stated, and we will agree standing terms for repeat programmes. Tell us the delivery pattern and whether this is a first order, and we will set it out clearly.