How to Negotiate Payment Terms

Toolkit

Learn how to set fair prices and negotiate payment terms to protect your cash flow and strengthen your business in major projects.

Resources

Why It Matters

Delayed payments can cause major cash flow problems, especially for regional businesses. Payment terms such as 30, 60, or even 90 days are common, but you can and should negotiate terms that suit your business.

Set Expectations Early

  • Clearly state your preferred payment terms when submitting quotes.
  • Ask about deposit payments, progress payments, or milestone billing.
  • Confirm whether the client uses systems like C-Res, which offers seven-day payment terms for eligible suppliers.

Sample Wording for Your Quote or Invoice

  • "To support delivery of materials and regional logistics, our payment terms are 40 percent up front, with the balance due within 14 days of project completion."

Tips for Negotiation

  • Be honest about your financial needs.
  • Offer minor discounts if early payment is possible.
  • Link payments to deliverables such as milestones, not just completion.

Quick Checklist

  • Terms are stated clearly
  • Payment is linked to scope or milestones
  • Deposit or staged payments are requested
  • Triggers for payment are documented in writing
Return to Payment Terms and Pricing toolkits

Disclaimer

The information and resources provided in this Business Toolkit are intended for general guidance and informational purposes only. Tactic makes every effort to ensure the accuracy and reliability of the materials contained herein; however, we make no warranties or representations, express or implied, about the completeness, accuracy, suitability, or availability of the content for any particular purpose.

Users of this toolkit are encouraged to seek independent professional advice before making any business, legal, financial, or strategic decisions based on the information provided. Tactic disclaims any liability for loss or damage, direct or indirect, that may arise from the use or reliance on this toolkit or any of its components.

By accessing and using this toolkit, you acknowledge and agree to this disclaimer.