Payment Terms and Business Communication

Andrea from Red Band contacts Junko to confirm a recent order and discuss payment terms. Andrea requests an extension from 30 to 60 days due to cash flow issues, promising it won't be a regular occurrence. She also plans to place a new order for an important customer who pays on delivery, which will resolve the cash flow problem. Junko considers the request and agrees to make an exception, appreciating the business relationship. Andrea asks for an email confirmation of the new payment terms, and Junko agrees to send it along with the new order details.

Who is Andrea calling and from which company?

• Junko from Red Band

• Andrea from Red Band

• Junko from Murray

• Andrea from Murray

What is the main reason Andrea is calling Junko?

• To cancel an order

• To request an extension on payment terms

• To discuss a new product

• To confirm the delivery

What is the usual payment term that Andrea mentions?

• 60 days

• 45 days

• 30 days

• 15 days

Why does Andrea need an extension on the payment terms?

• They are having cash flow problems

• They are expanding their business

• They want to place a larger order

• They received a faulty order

What does Andrea promise regarding the payment extension?

• They will reduce the order size

• It will not become the norm

• They will pay earlier next time

• It will become the norm

What additional request does Andrea make during the call?

• To change the delivery address

• To reduce the order size

• To place another new order

• To cancel the current order

How will Andrea's cash flow problem be resolved?

• By receiving a loan

• By the new order being paid on delivery

• By extending the payment terms to 90 days

• By reducing expenses

What does Junko agree to do at the end of the conversation?

• Cancel the order

• Extend the payment terms to 90 days

• Make an exception and extend the payment terms to 60 days

• Reduce the order size