AJX 0.00% 1.3¢ alexium international group limited

Quarterly - expectations, page-43

  1. 2,487 Posts.
    lightbulb Created with Sketch. 205
    "The industry standard for these terms is typically 30 to 120 days after receipt of goods. Deciding on payment terms is a balancing act between managing potential credit risk and staying competitive within the market."
    So if they have a patent and are cheaper than the nasty stuff and it's selling it's socks off and they have a major DoD contract than 30 days is more than competitive. Companies who require these very long payment terms run a red flag up the mast always, because it flags they have a liquidity problem and are using suppliers as banks. I have seen this in the Australian business markets in the 80's/90's ... everyone pushed out payment periods which went on down the line, the smallest companies at the end of the chain often went broke. That's why the markets view it with concern and rate it at higher risk, which inturn dampens the sp.
 
watchlist Created with Sketch. Add AJX (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.