In order to clinch a deal its easy to overlook poor payment terms, but you may be in a better negotiating position than you think…
In times like these, the old saying that “cash is king” has never been more apt. Prices are under the cosh, but we never should lose sight of the fact that if you are being offered work, there must be a good reason. It is usually a combination of good quality work, ability to complete in the time scale and lowest price.
Before signing on the dotted line, having had the price beaten down, it is worth chancing your arm to improve the payment terms.
Some offers of work come with a 60 days and often more payment terms, which compares badly with the normal 14 or 17 days provided in many standard contracts.
Contrary to what many believe, a negotiating position is at its best when the price has been accepted, the person offering the work is under time pressure to get the project started, but the deal not finally clinched.
A threat to walk away from the project, unless the payment terms are improved, may be considered by many to be a high risk strategy, but often a job on lousy terms is worse than no job at all.