Financing contracts - buying plumbing products


Assignment:

Question 1. Assume you work as a wholesale salesperson for a plumbing supply company. One of your customers, a building contractor, has an "open line" of credit with your company for $10,000 worth of your plumbing products. He is currently at his credit limit; however, his account is not overdue. He has just received word that he has been awarded a $40,000 plumbing contract at the local airport. The contract requires that he supply $9,000 worth of plumbing products. Your customer does not have the "cash" to pay for additional plumbing products to buy from you. He tells you that unless you can provide him with some type of financing, he may lose the contract. He says that he can pay you when he finishes his next job in 60 days.

  • What will you do? What are your options, and why?

 

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Business Management: Financing contracts - buying plumbing products
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