Pietra allows you to pay suppliers easily, securely, and through Credit Card, Wire Transfer, ACH. You also get the benefit of being able to negotiate with suppliers on terms, deposits, and more. After you are done communicating with your supplier, you can either submit a purchase order to them on the platform (see below) or ask the supplier to invoice you directly on the platform.
Payment on Pietra protects you from being scammed. Please be aware that Pietra has no control over conversations and payments that happen outside the platform.
Purchase order templates can be found in the top right hand side of each conversation with your supplier.
When paying invoices on Pietra you can decide to either ship to yourself, your existing 3PL, or directly to a Pietra fulfillment center! You can select the appropriate action on checkout. Sending items to Pietra's Fulfillment Center is one of the benefits to using Pietra. Organizing shipments to yourself and worrying about storage of the items is one of the most overlooked concepts for small businesses. Pietra offers incredibly competitive storage rates. As members, you are able to utilize Pietra's Fulfillment Center to store your products. If you decide to ship the products to yourself first, you will be responsible for shipping the products to Pietra's 3PL yourself. You cannot ask your manufacturer to ship directly to Pietra's 3PL without invoicing through Pietra's platform. Those shipments will not be tracked and will be returned to sender upon delivery. In some cases, the shipments may be lost forever. It's recommended, instead, that you use Pietra's invoicing platform to pay factories and organize shipping.
Pietra allows you to pay with multiple types of payment. One of the most popular things for new businesses to start is to pay for your shipment using ZipPay which allows you to pay for your samples and inventory over four (4) installments instead of all upfront. Of course, you are also able to negotiate terms with your supplier.
Here are some tips and tricks for negotiating terms with your supplier:
Payment terms with manufacturers can vary based on factors such as the industry, the nature of the product, the volume of orders, the relationship with the manufacturer, and the negotiation skills of the parties involved. Here are some common types of payment terms you might encounter:
Advance Payment (Prepayment): You pay the manufacturer a portion of the total order cost upfront before production begins. This is often used for custom orders, initial orders, or to cover material costs. The remaining balance is typically paid upon completion or before shipment.
Net 30 (or Other Net Terms): You have 30 days from the date of invoice to make the full payment. This is one of the most common payment terms and is suitable for established businesses with good credit.
Net 60, Net 90, etc.: Similar to Net 30, but with extended payment periods (60 or 90 days). These terms can help with cash flow but might be subject to negotiation based on your relationship with the manufacturer and your creditworthiness.
Cash on Delivery (COD): Payment is made at the time of delivery or when the products are picked up. This term is often used for smaller orders or when there's a need for immediate payment.
Letter of Credit (LC): A financial instrument issued by a bank that guarantees payment to the manufacturer. It's commonly used in international trade to provide assurance to the manufacturer that they will be paid once certain conditions are met.
Payment in Stages: For larger orders or complex projects, payments may be divided into several stages or milestones. Each milestone corresponds to a portion of the total order, and payment is made upon completion of each milestone.
Consignment: In this arrangement, you pay the manufacturer after the products are sold to end customers. This can be useful when launching a new product, as it reduces upfront costs but may come with higher per-unit costs.
Escrow: A neutral third party holds the payment until certain conditions are met, such as successful delivery and inspection of the products. This provides security to both parties.
Revolving Credit: This is a credit agreement that provides a certain amount of credit for purchasing products over a specific period. It can be useful for businesses with regular orders.
Trade Credit: The manufacturer extends credit to you based on your relationship and creditworthiness. This can be negotiated and may vary based on the manufacturer's policies.
It's important to carefully review and negotiate payment terms with the manufacturer, taking into account your cash flow, the risks involved, and the impact on your business. Additionally, consider working with legal and financial professionals to ensure the terms are fair and appropriate for your specific situation.