Looking back on the past two years, the textile market at that time was a prosperous scene. You can see large trucks laden with cloth coming and going in an endless stream, and gray cloth from printing and dyeing factories was piled on the road. Classy busy scene. For this year’s textile workers, the pain of the slow peak season in the second half of the year has made them miserable.
It can be said that the market conditions throughout the year were not bad last year, and the peak season was unprecedented in recent years. Gray fabrics began to queue up to wait for goods. Because of this, gray fabric companies, which had always had a lower voice, took the initiative, and a trend of cash delivery was formed in the industry. For cloth owners, it’s more economical to get goods in cash than to buy an extra meter of cloth. Because the problem of gray fabric arrears was serious in previous years, gray fabric factories often had difficulty with capital turnover, and paying accounts was also a long-standing problem.
This year, the overall market situation is average, similar to previous years, so it has returned to an environment where gray fabrics are sold on credit. In the second half of the year, the author asked about the situation of many gray fabric companies. Most cloth owners reported that although the market in the second half of the year was not as expected and not too prosperous, the overall order volume was acceptable. However, the problem is not the single quantity, but the serious arrears and the repayment is too slow. The boss of a nylon fabric manufacturer in Shengze told the author: “The overall situation this year is actually pretty good. Although it is not better than last year, it is not too bad. It’s just that the payment is too slow now, and we can’t compare it with last year’s cash. Now the gray cloth It takes 3 months for payment to start after it is issued. It is not paid all at once, but in installments, so getting the money back is a big problem at the moment.”
It can be seen from Boss Bu’s reaction that payment collection is a big problem, especially since the end of the year is not far away and it is time to start clearing the accounts. In previous years, every time at the end of the year, the matter of settling accounts always bothered all cloth bosses. Because of it, they couldn’t eat well or sleep well! Therefore, clearing accounts has become a top priority.
Last year, many bosses told me that the accounting situation had improved a lot, and the whole process was relatively smooth. The various excuses that often appeared in the past and refused to settle the accounts were obvious. improvement. So, what exactly caused the stubborn default on debts to reappear this year? After a comprehensive analysis, the author found the following reasons:
Intense competition and eagerness to clear inventory
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Comparing the market situation this year with last year, there is a huge difference. Since the market in the first half of this year is still in the peak season, many cloth bosses predict that the market in the second half of the year will also be the peak season. Therefore, in the first half of the year The production of gray cloth in the second half of the year will begin. However, in the second half of the year, the market was not as good as expected and the order quantity was not large. Therefore, many weaving companies had a lot of excess inventory in their warehouses. In addition, the machines were constantly producing, so the cloth boss was eager to get rid of the inventory in the warehouse and promised customers to sell on credit. In this way, credit sales spread, making credit sales popular in the entire gray cloth market. Therefore, once the sales are made on credit, and the market situation is average, it is impossible to get the goods in cash.
Grey fabric traders are short of funds, and their debts are circulating
Furthermore, most of the companies that default on gray fabrics are fabric traders. Businessmen and traders, as middlemen, also have many things they cannot help but do. Garment factories or clothing traders often fail to pay fabric traders on time. The shortest arrears are 3 months, and the longest arrears are even one year. Therefore, the funds of gray fabric traders are particularly tight, and they can only default on payment if they have no choice. Gray cloth company. And as we all know, the dyeing fees of printing and dyeing factories are paid monthly, and there is no precedent for arrears. Gray fabric companies are often more talkative, and there have always been cases of arrears. Therefore, the practice of defaulting on gray fabric companies has become deeply ingrained.
The current market situation is not busy. It can only be said that it is progressing steadily. Since there is no So busy, Boss Bu shouldn’t be idle, why not shift the focus of work to clearing accounts, which is the top priority at the end of the year! Finally, the author wishes Boss Bu a smooth payment at the end of the year! </p
