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Special Announcement 2015
2015-03-04 22:57:30

Special Announcement 2015 for cooperative partner about such risk payment terms


Honorable Customer:

Greetings to you! We have greatly appreciated your partnership with and your support for us in the past.

In 2012, in an exception to our customary payment terms, we agreed to extend a customer in Virginia payment terms of 30 days after receipt of goods. In the end, the customer failed to pay for the order and we suffered a loss of $79,000.

Then, in 2013, another customer in Florida paid a 50% deposit on their order and promised to pay the remaining 50% within 30 days after receipt of goods. However, that promise to pay has so far not been honored.

In order to better support our customers, we constantly strive to develop and manufacturer LED lights at the lowest possible prices. This necessarily means our profit margins are very small. So small, in fact, that when these two customers failed to pay for the products they contracted us to build for them, the losses we sustained very nearly drove our company into bankruptcy.

Because of thin margins, the high risk of conducting international transactions, and the fact that we have twice now suffered painful losses to customers who failed to abide by their promises to pay, we are sadly no longer able to accept the risk of extending 30- to 60-day payment terms to our valued customers.

We hope you will understand our decision and continue to honor us with your support in the future.

Most sincerely yours,

Sam Wei, CEO

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