Do companies like BlackBerry, Apple, HTC provide deferred payment terms?

by Justin Banks

Want to know if you are a master agent and/or authorized reseller for carrier and a standalone reseller of phones, do you have to buy outright phones or would companies like HTC, Blackberry, LG etc, would they negotiate payment terms, say inventory bought must be paid in 6 to 8 months, so like credit terms?

Typically do master agents with online retail outlets negotiate terms in that payment manner, much like subsidies of big carriers, do they get payment terms that allow them to stock volume high-end smart 3G phones and pay over 6 to 8 months, etc?

How would this work and where to start?!

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Sep 05, 2011
Agents Ordering Prepaid Wireless Phones
by: PrepaidWirelessGuy

First, you'll find that as a master agent/master distributor, you won't be purchasing handsets from OEMs (ex. Apple, HTC, BlackBerry, etc.). Each phone type and model is tied to a specific wireless carrier.

There are different levels of distribution. If you're at the highest level (i.e. you sell a lot of phones by distributing to hundreds or even thousands of smallter stores), you'll be dealing directly with the wireless carrier. Although, even in this case, given the maturity of the current market, going direct can be a challenge.

Each wireless provider will have different payment terms. Depending on your distribution value to them, and your overall size (i.e. sales volume), they may be willing to negotiate with you on payment terms. However, for the most part, they'll each have their own standard payment policies that they'll expect you to comply with. You'll need a fairly compelling reason to convince them to veer from their standard terms.

A number of wireless carriers actually DO offer terms; for example 30, 60, or 90 days depending on your credit worthiness. Though in recent years it has moved away from 90 days, and closer to 30, and even down to 10 days. The carrier's Finance/Treasury/Revenue Assurnace teams will evaluate your financial stability and risk. Depending on how that pans out, and the payment terms you want, they may ask you for an LOC (Line of Credit), which reduces their risk in the case that you don't pay in a particular month.

Remember that generally speaking the faster they get their money, the lower the perceived (and actual) risk, and they can also make money on the cash flow that they have.

Yes, some carriers will require that you prepay, however, that's not always the case. In fact, sometimes it's the distribution center partner (ex. BrightPoint) who will hold the payment terms and risk with the master agent/master distributor, and not the wireless carrier directly.

In other words, it varies, and you'll have some options depending on your particular business, and the carrier(s) you're working with. A word of caution, if you do get credit terms, be very careful. I've seen master distributors selling millions upon millions of dollars PER MONTH, go belly up because they got too aggressive with their cash flow. Good/bad cash flow practices can make or break a business, so please consider your model wisely even if the carrier offers you terms.

I hope this helps.

Sep 05, 2011
Phone sales etc
by: Anonymous

From what I understand, all handset sales must be prepaid. Handset orders shipped to dealer via FedEx or UPS require payment to driver (cashiers check or money order) at time of delivery

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