November 25th, 2015 10:58am
Every business finance class starts with the same lesson of the time value of money. A dollar today is worth more than a dollar one year from now. When you are getting paid, you want the money at the earliest possible time. When you are in debt or have to pay, you want to pay the due amount of debt at the latest possible date without accruing interest. These principles are business basics, queuing the most accurate and most cliche term: Time is money.
If a business proposed for you to pay for import shipments two months after they were shipped, with no accrued interest or up-charges, wouldn’t this be a no-brainer for you as the owner? It seems to meet every premise of the entrepreneurial business lessons we were taught in day one. In that two months-time, your product would have arrived, been inspected, listed for sale, marketed, and completely sold out! This could be cold hard cash in your pocket before even paying the original shipping costs. With InXpress, we can make this happen by delaying the DHL payment. I will tell you how.
Your supplier, a majority of the time, requires the entire balance of raw material, shipping, and insurance paid via wire transfer, PayPal, Western Union etc. before the product even leaves their location. This is the way most foreign suppliers operate and it is hard to blame the company for these stipulations. Suppliers want to ensure payment and what better way than to demand funds before letting go of the product.
You now have a smarter option. Say, for example, you ordered a shipment from your supplier and they have it ready on the first of the month and it is a Wednesday. With InXpress, the package can be picked up by DHL Express on that day with no charge to you or the supplier. It will most likely be delivered to the desired location on either that Friday the 3rd, or Monday the 6th. It is now in your possession to do as you please. Better yet, you will not receive an invoice for this shipment until the following Monday the 13th. At this time you have 14 days to pay InXpress for the shipment or up until Monday the 27th. We are now 27 days removed from when the original package was picked up from your supplier’s location.
To further the benefits, InXpress accepts credit card payments for shipments. Now if the credit card payment is made on Monday the 27th, the money will not be due from your bank account until at least 30 days following, or the 57th day from when the package was initially picked up. This is the earliest possible payment deadline from the credit card company, interest-free, depending on what time of month your statement cuts off. In this example, we have now delayed a shipping bill completely interest free by at least 57 days by simply using InXpress instead of our suppliers shipping account.
This begs the rebuttal; “But my supplier’s shipping rates are so low, I will never be able to match these rates with my own account, right?” Because InXpress is equivalent to DHL’s 5th largest customer worldwide, they obtain rates for their clients that offer substantial discounts, and therefore, likely able to match or beat your suppliers shipping rates. All of these services are no cost to you or your business.
As if the previous reasons are not enough, here are additional benefits to ship with your own InXpress account:
Although it may have been a while ago, college professors taught us that receiving money now and paying money, interest free, later is always going to be more desirable. When your business can delay paying bills for nearly two months with no additional cost, you must jump at the opportunity. Just begin using InXpress for international shipments.
-To higher sales at greater margins,
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