Group 1

Beauty in the Bar

Solutions to Marco’s
Problem
Down payment
 Dealers must give partial payments for the
products they purchased to give Marco the
security he needs. In this way, Marco will at least
retain cash inflow rather than cash outflow.
Discounts and
Penalties
 As Marco faced problems in the collection of
payments, particularly the delays in receiving the
payment from his dealers, it is a reasonable solution to
give discounts to those who paid within the 10-day
credit term to encourage on-time or early payments and
give penalties to the dealers who have delays to prevent
any overdue payments
Time Factor
 For the dealers, they should have time benefit based
on how much they purchased a product from Marco. If
the dealers obtained a minimum of 10,000 worth of
products and Marco provided them a 10-day credit
term, those who purchased more than the minimum
amount should have a longer time frame.
Credit Limit
 If there is a time frame based on how much the dealers
obtained products, Marco should’ve also set a credit limit
for them. Based on the creditworthiness and reliability of
the customer, establishing the maximum credit limit on
how much you can entrust to your dealers will be a
benefit in circumventing the dilemma of overselling to
the dealers beyond the designated limit.
Overdue Notice
 If Marco has been confused in collecting the
payments because of the large number of his dealers,
keeping an internal alert system to notify the overdue
bills during the payment request will surely help BBI in
receiving payments.
Payment Policy
1.0 Purpose

BBI strives to ensure a clear

understanding of your financial
responsibility with respect to the beauty
soaps that we provide. We have
developed new payment procedures
and policies on how you can pay for
your purchased products. Moreover, we
accept cash, check, Mastercard, and
online payment methods such as Gcash
and Paymaya. Payment is expected
considering the due date of your
purchase.
2.0 Scope
This policy and guidelines
apply to all deals of Beauty in
a Bar (BBI) products to the
dealers in remote parts of
Calabarzon. All of the dealers
within BBI are responsible to
adhere and follow the policy
and guidelines below.
3.0 Policy

In order to facilitate the collection of

payments, it is Beauty in a Bar Policy that
credit will be extended to all dealers who
demonstrate both the ability to pay and a
history of timely payments of debts. The
company will evaluate all new dealers to
determine what payment terms and methods
will be required and what level of credit will
be established. In the context of this policy,
the method of assessing risk and determining
a credit limit to dealers varies depending on
the amount of credit requested and their
record.
Credit Policy

Conditions for paying through

credit terms according to the good
standing of the dealers are as
follows:
We will follow cash discount terms for a credit
transaction depends on your history of good
payments.
• For the dealers who had established a good payment track
record, you can purchase a minimum of 10,000 and above. If
you have purchased a minimum of 10,000 worth of products,
you are given a cash discount term of 2/10 Net 30. You are
allotted to pay in 10 days to get a 2% discount, or you have the
option to pay the amount due in full within 30 days.
• For the dealers who go overdue payments and don't maintain a
better record, you have a maximal worth of 10,000 products,
you must provide a partial payment and you are responsible
for the terms of Net 10. Thus, the full payment is due and
expected in 10 days. If you keep on getting overdue, a late
payment penalty will be enforced. Therefore, you are liable to
pay a 2% penalty based on the amount worth of your
purchased products.
 (Dealer’s Name)
Change in the Payment Policies and Terms
June 18, 2021 
Dear (Dealer’s Name),
  We appreciate our business and you as a dealer to Beauty in a Bar (BBI). This is to request a change in the payment guidelines that we used to administer.
We believe that such a change in terms is reasonable because the company is having a difficult time collecting payments which causes delays and affect the
company’s cash flow. To avoid financial difficulties, we humbly request you to settle your payments according to our new policies for our dealers. Once you agree
to new policies, we will be able to respond to your invoices more effectively.
The payment term for the dealers who have a good track record has a cash discount term of 2/10 n/30, you have 30 days to pay for the products on credit but can
get a 2% discount if you pay the items within 10 days. However, those who go overdue have the maximum of 10,000 worth of beauty soaps due 10 days after the
purchase, a down payment is a must and a penalty will be enforced if you keep on delivering late payments. We accept payments through cash, check, Mastercard,
Gcash and Paymaya.
As a result, it is favorable to both our businesses to arrange new payment policies and guidelines. We hope you consider our proposal and thank you for
your time.
The Beauty in a Bar team appreciates you as a dealer of our products. We hope to keep providing the best products and deals for you. If you have any
further queries, please contact us at the given address or contact number.

Yours sincerely,
Beauty in a Bar
Calabarzon
THANK YOU!!