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Change in payment terms. What would you do?

Startups, marketing and more
dealtn
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Re: Change in payment terms. What would you do?

#650152

Postby dealtn » February 29th, 2024, 9:43 am

redsturgeon wrote:Would you believe that this multi billion pound organisation is now wanting to haggle with us and are asking if 90 days would be OK?

WTF

Is this what the business world has come to?


Sounds normal to me. You would rather deal with a company that didn't want to negotiate? Your choice of course whether to accept or not but I would advise doing so with a business not emotional head.

90 days sounds a reasonable term for invoices to me, so long as they adhere to it, and you have the opportunity to price your product accordingly to reflect that cashflow delay.

redsturgeon
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Re: Change in payment terms. What would you do?

#650154

Postby redsturgeon » February 29th, 2024, 9:51 am

dealtn wrote:
redsturgeon wrote:Would you believe that this multi billion pound organisation is now wanting to haggle with us and are asking if 90 days would be OK?

WTF

Is this what the business world has come to?


Sounds normal to me. You would rather deal with a company that didn't want to negotiate? Your choice of course whether to accept or not but I would advise doing so with a business not emotional head.

90 days sounds a reasonable term for invoices to me, so long as they adhere to it


In a strange twist of fate they are a supplier to another part of our business...terms 30 days!

Also in the past they have been tardy with their settlement. In those days they were a major part of our turnover but that has changed and now we are not sure if we even wish to continue to deal with them.

Most of our turnover is now B to C rather than B to B and nobody leaves the premises without payment having be made.

redsturgeon
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Re: Change in payment terms. What would you do?

#651397

Postby redsturgeon » March 5th, 2024, 1:26 pm

Latest Update:

After a meeting between Mrs RS and the key marketing personnel we have just had an email from the finance department suggesting that we charge a supplement for accepting the 120 day payment clause.

Sometimes it pays to know your own worth.

Lanark
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Re: Change in payment terms. What would you do?

#651411

Postby Lanark » March 5th, 2024, 2:44 pm

Im guessing they know a lot of suppliers are putting in new prices due to inflation in the new financial year.
So they are trying this on to get a little something back.

I would add on an inflationary rise + a few percent for lost interest + a few percent for the extra risk you are assuming.
Call it 20%

kempiejon
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Re: Change in payment terms. What would you do?

#651427

Postby kempiejon » March 5th, 2024, 3:17 pm

redsturgeon wrote:After a meeting between Mrs RS and the key marketing personnel we have just had an email from the finance department suggesting that we charge a supplement for accepting the 120 day payment clause.

Sometimes it pays to know your own worth.


That sounds like a reasonable outcome and perhaps it'll come out at worst a zero sum gain for you. A nod to Mrs RS negotiation skills. Alternatively a realisation that a boardroom decision imposed by the numbers people realistically being put into practice by the people at the coal face. If so then it won't achieve the cash flow improvement expected will it?

As you say know your worth. Many years ago when I slung my talent for a day rate in events I had a contract that was almost as bad at paying as I was at credit control. When I noticed they were overdue for about 6 months of invoices I contacted accounts and was fed the standard lines about month end, requests for copy invoices and waiting for the next cheque runs. Accounts didn't book me though and a week later I got a call from the producer for a few days work. I had to tell him unfortunately I couldn't help this time as the account was too far in arrears. He came round that evening with a cheque clearing their account to secure me for that show.


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