we made a 100k advance payment to a material supplier. Supplier: 'give me 2 weeks.' 2 weeks passed, no news. Phone doesn't answer. Number is disconnected. I've written off the money.
Advance payments are risky. Should have discussed: 1) installment payment (30% upfront, 70% after delivery), 2) credit card/check instead of bank transfer, 3) requesting a letter of guarantee.
My question might sound amateurish, sorry about that. If you get three different answers on a topic, the question was asked wrong.
Just leaving this note, it might be useful.
I think it's hard to be that definitive about supplier scammed us. Mistakes made on the supplier scammed us side are usually reversible but expensive.
Proven by experience.
Thanks for writing this, that's the right way. People defend habits not processes. Resistance comes from there.
Just leaving this note, it might be useful.
I disagree with you on this point. The answer varies greatly by industry; there is no one-size-fits-all rule.
Exactly like that. Don't hesitate to ask; those who don't ask always pay more.
Just leaving this note, it might be useful.
Just a heads-up. Just because everyone does it doesn't mean it's right.
When making decisions, write down the worst-case scenario too, not just the best. That's all, sorry if I went on too long.
This is exactly what we experienced. Hasty decisions become decisions you have to fix six months later.
Extending terms makes customers happy but turns you into a financing institution.
Doki · E-commerce infrastructure · 2026
I agree, and I'd like to emphasize that. Mistaking revenue for cash is the most expensive illusion; trust the bank account.
Processes without records never improve, because you don't know what to fix. Hope this helps.
I feel the same way. Everything goes well for the first three months; problems arise in the fourth.
Processes without records never improve, because you don't know what to fix. If you have questions, write them; I'll answer as best I can.
Doki · Server maintenance contract · 2025
Here's how it went for us. The longer you delay cutting the team, the more people it affects.
The moment you depend on a single client, you no longer set the price. If you post the result here it will help others too.
Let me speak from the other side; I'm on the supplier side. Extending terms makes customers happy but turns you into a financing institution.
If you post the result here, it will help others too.
Could you elaborate on that? Don't hesitate to ask; those who don't ask always pay more.
Most time waste accumulates in tasks waiting for approval.
I'd appreciate it if you shared the outcome. Processes without records never improve because you don't know what to fix.
Looking profitable on paper but having no cash in the bank is very common. If you post the result here, it will help others too.
There are three things to check when doing this. If you don't write this down from the start, it leads to arguments later.
That's all, sorry if I went on too long.
I have a question, don't want to go off-topic though. Mistaking revenue for cash is the most expensive illusion; trust the bank account.
If I were you, I'd go this route.
I felt relieved reading this answer so it's not just me. The first thing to break as you grow is communication not the numbers.
Good luck with that.