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Source? The real issue is the contract language used by the EU and the member governments specify "pay on delivery" in which the receiving agency will not acce
by sanguy 7y ago
Source?
The real issue is the contract language used by the EU and the member governments specify "pay on delivery" in which the receiving agency will not accept an invoice until the goods are received and inspected as well as 60 to 90 day terms being normal. The EU members are very slow with this acceptance (2 weeks is not abnormal) and combined with the longer payment terms you are looking at 10 to 12 weeks to get paid.
In the US the governments will accept contracts "FOB" which means when the product is ready to ship from the manufacturer the buyer will accept the invoice. Terms tend to be 30 days but 15 is also possible. Plus you tend to get paid on time.
So in a global market with demand the US will always be a preferred customer. They will pay, on average, 6 to 8 weeks faster.
Cash is king in todays world and the EU needs to get used to this or they are going to continue to see such challenges.