How to agree payment terms that work with Laura Humphries and Philip King FCICM

In this episode of "Minimise Debt, Maximise Cash with Top Service," Emma Riley, CEO of Top Service and the 2025 Credit Professional of the Year , introduces a discussion between Laura Humphries, Head of Customer Development, and Phillip King, Non-Executive Director. They discuss the importance of agreeing on payment terms that work for both parties. Laura emphasizes that both the supplier and client need to be on the same page regarding payment expectations to avoid significant delays in cash flow. To prevent such issues, it's crucial to agree upon payment terms at the very beginning of a business relationship, confirm them in writing, and clearly state them on all invoices and communications. The discussion also addresses situations where larger customers demand payment terms that are unworkable for suppliers. Laura and Phil advise that suppliers need to be honest about the potential impact on their company if they agree to unfavorable terms, as a business that goes bust cannot be a good supplier. They suggest that large businesses may agree to shorter terms if they understand the reality of the situation, and sometimes it's better to decline an order than to accept one that ultimately jeopardizes the business. Phil shares his experience as a small business commissioner, where he saw large companies adapt their payment practices during lockdown after realising the impact on small businesses. Listeners seeking advice on payment terms are encouraged to contact Top Service by phone at 01527 518802 or through their website. Emma Reilly concludes by inviting listeners to connect with Top Service Limited on LinkedIn or watch the video version of the podcast on their YouTube channel for more tips on maximizing cash and minimizing debt in the construction industry To enquire about Top Service services for your Business, go to https://www.top-service.co.uk/contact-us/ Music by Purple PlanetRead transcript