Payment options at Cutting Edge Doors & Woodworking
Are you ready to place your order? First, read this article to learn about the payment options at Cutting Edge.
Placing your order may feel like the final step you need to take. But in reality, there are still a couple more details that you have to look after first.
First and foremost is payment. Often, kitchen cabinet door orders cost at least $1500, depending on the door style and other options you select.
As you can imagine, this adds up quickly when you order multiple kitchen cabinet door orders each month. So, what are the payment options at Cutting Edge?
At Cutting Edge Doors & Woodworking, we work with many customers daily – from homeowners ordering their own cabinet doors to contractors working a couple of kitchens yearly to cabinet manufacturers selling hundreds of kitchens and everything in between.
No one payment method is perfect for every customer, so our team has developed three standard payment options.
In this article, you will learn:
- The three payment options at Cutting Edge
- Pros and cons of each payment option
The 3 payment options at Cutting Edge
We have three main payment options at Cutting Edge:
- Standard payment terms (50% deposit up-front and the remaining balance before shipping)
- Full deposit
- Credit terms
Standard payment terms - cash account
When you set up your account at Cutting Edge, you receive our standard payment terms. When you place an order, we require a deposit (50% of the order cost) before the order goes into production.
Then, once the order is ready to ship, we contact you to collect the remaining balance.
Pros of the standard payment terms:
Using our standard payment terms means you only have to commit 50% of the order cost up-front.
If you want our standard payment terms, we do not require any information except your business and contact information.
Cons of the standard payment terms:
When you use our standard payment terms, your order may have delays. Each order waits for payment twice: once before it goes into production and once when it is ready to ship. Even if we can contact you within one working day each time, this adds two extra days to your order lead time.
Full deposit up-front - cash account
If you do not wish to use our standard payment terms, we have a second cash account option. If you choose this option, we require full payment for the order before it goes into production.
However, there are benefits to this payment option at Cutting Edge.
Pros of the full deposit up-front:
Paying the full deposit up-front prevents order delays. As soon as you pay for your order, it can enter production. Then, as soon as it is complete, we can ship it to you immediately because we do not have to collect another payment. You might prefer this option if you are busy and do not have a team member designated to watch for emails and answer phone calls.
Cons of the full deposit up-front:
The drawback of paying the full deposit up-front is that you have to commit the entire cost of the order before it goes into production. Depending on the door style you select, this can be a while. For raw doors, you need to pay about two weeks in advance; for finished or custom orders, you may need to pay between six and 12 weeks before the order ships.
For this reason, many of our smaller customers don’t go this route. Tying up a large sum of money that you won’t recoup for a couple months can be significantly more problematic when you have smaller profit margins than large corporations.
Credit terms
Our third payment option at Cutting Edge is credit. You can request credit terms from our team at any point.
Credit terms have two main parts: the credit limit and the payment terms. Credit terms also have some very specific requirements.
Credit limit:
At Cutting Edge, your credit limit accounts for the dollar value of all the orders that have shipped to you.
You can request a specific credit limit. Or, if you already order from Cutting Edge, we can access your past order history and determine a credit limit that will work for you.
It is possible to exceed your credit limit in two ways. Firstly, by not paying for orders within the 30-day payment terms, and secondly, by exceeding your credit limit dollar value.
If you exceed your credit limit, we charge 2% interest monthly on the overdue balance. If you frequently exceed your credit limit, our team reserves the right to hold complete orders and to revoke your credit terms; however, we will always take the time to discuss your options with you before this happens. From increasing your credit limit to extending your payment terms – we will exhaust every option before revoking your credit limit.
Payment terms:
Our standard payment terms are net 30. That means you need to pay in full for your order within 30 days of the date the order shipped to you. We do consider alternative payment terms (for example, net 15 or net 45) if net 30 does not work for you.
Requirements:
You need to sign a credit application to get credit from Cutting Edge. In addition, if your business is a Saskatchewan corporation, you must sign a personal guarantee. Corporations outside of Saskatchewan also need to sign a personal guarantee and have the personal guarantee witnessed by a notary public.
Without this signed paperwork, we may reject your credit application. It is good business practice to have this documentation; if a third-party company goes out of business without clearing up debts, the cost of the cabinet doors we provided is covered.
Pros of credit:
Having credit terms from Cutting Edge prevents order delays as long as you don’t exceed your credit limit. As soon as you confirm your order, we put it into production and ship it out once complete.
Cons of credit:
You have to fill out the necessary paperwork to get credit terms, which (let’s be honest) can be a bit of a hassle.
In addition, if you exceed your credit limit, we charge interest and hold any orders until you pay the overdue balance.
Next steps: place and pay for your order
When you started reading this article, you had an order ready to place, but you were unsure what you needed to provide for payment.
Now, you understand the payment options at Cutting Edge and that paying promptly helps prevent order delays.
With that out of the way, go ahead and place your order!
