Newegg has a credit plan?

[Mercutio]

So I'm a Newegg junkie. I make about 20 orders a MONTH from Newegg.com on average. I pretty much buy everything but cases and motherboards there.

A while back I decided that I don't like the current "updated" version of the site, so I bookmarked the old version. I've been using that the last few months.

Today I visited newegg through the main page, showing someone where I buy most of my hardware. And I assembled an order for about $600 worth of new computer for that person.

... and at checkout I noticed there was a "Bill me in 90 days" option.

It's basically a credit account from Chase/Bank One that's only valid at certain merchants; the interest rate after 90 days is awful (18%) if you miss the 90-day payoff mark, but...

For someone like me, who regularly lays out thousands of dollars of my own money to cover things that other people want, this is like net/90 day terms from a distributor.

I'm not 100% sure it's a good thing, and I haven't pressed the "order" but yet, but at the moment I'm thinking this is a positive thing.

 

[Will Rickards]

When I worked as a computer salesman this type of option was a good thing for sales. People would buy the computers if they could pay in 90 or 180 days or more without interest.

As a consumer I think it is a bad thing, let's you get easily in debt with a horrible interest rate.

 

[Tannin]

Use it, Merc. But keep a bloody close eye on how much you have clocked up. It's very easy to discover that you are a long way behind where you thought you ought to be with these things.

Supplier credit is like a chainsaw: wonderful tool, but you must remain aware of exactly what you are doing at all times.

 

[Mercutio]

Well, sure, if you're doing one-off purchases.

Personally I'm looking at it as credit terms from a distributor, though. My local distributor - the guy I buy cases from, basically - gives me 30 days to cough up cash. I come, pick up a half-pallet of computer cases, sell them as computer systems, and at the end of the month I pay him for the cases as I pick up my next half-pallet.

I'm pretty sure that big guys like Ingram Micro do the same thing.

So to me this seems very business-friendly.

 

[Computer Generated Baby]

...I'm not 100% sure it's a good thing, and I haven't pressed the "order" but yet, but at the moment I'm thinking this is a positive thing.

This is POSITIVELY a GOOD thing, Merc -- if you are willing to stick with New Egg. As you probably know, credit terms of Net / 30 Days is the norm for small and medium businesses that qualify for credit. Chase may decide to stop offering this deal in a few months to any new takers.

Bottom line (pun intended): If someone can't manage cash flow properly, they really don't deserve to be in business.