3. They usually go by names like Wal-Mart or Home Depot. Extended payment terms – who really pays the price? ... (payment terms, deposit with payment terms, non-payment terms and grace periods) then you need to seriously overhaul your sales contract and add these. For any business it can be really difficult to deal with clients that pressure 60+ day payment terms. How you respond to a demand letter can help shape the tone and path of your following interactions, so make sure you do it well. Review payment terms. How to reject and handle ridiculous customer service requests. Yes, there are some companies that have net-90 or even net-never payment terms with their suppliers. Over Relying on "For Settlement Purposes" When discussing payment terms with suppliers, consider asking them to: extend the payment days from 30 days to 45 – to smooth out changes in your cash flow * allow you to pay quarterly – for example, companies such as water and power utilities By sending an email before the payment date, you ensure the client has enough time to gather and organize payment documentation . A vendor email requesting payment is a business process issue and should be handled with objectivity. Or “Net 60”, which means they receive your invoice and wait at least 60 days to send payment to you. To help, avoid these three common mistakes lawyers make when responding: 1. Heald and Marion have the following seven strategic suggestions for how small businesses can resist extended payment terms and negotiate with their larger customers. Therefore, responding professionally can only be achieved by anchoring all feedback on existing policies. Sample response to a letter of demand This is an example of a response to a letter of demand. How to respond to a customer's demand for payment extension? Firms operating on small margins and with limited power to raise prices become increasingly fragile when faced with extended payment terms. If there are no “enclosures” you may delete “Enclosure” from the bottom of the letter. It can be a source of pain with angry customer emails that feel like a punch to the gut, or you can have the more comical and ridiculous customer service requests that make you think, “I can’t believe you’ve asked for that.” ... and the correct response is to help them to understand how much 90 days credit will cost. I’ve found that the old adage “if it looks like a duck, waddles like a duck and quacks like a duck—it probably is a duck” usually holds true. You don’t need to ask for payment directly in the first email – you just need to make sure your client is well aware of your payment terms and basic information beforehand. for an extension on payment terms.. Be sure to include any “enclosures” mentioned in the letter. Active 4 years, 6 months ago. Cash flow is arguably one of the most important elements of running a business. Be sure to sign the letter and to make a copy before sending it out. Ask Question Asked 4 years, 6 months ago. Here are some tips to help you respond professionally to vendors requesting payment via email: Communicate based on Payment Policies. Review supplier payment terms regularly to help you manage cash flow. The last thing they want is for you to go out of business because that means they’ll lose a customer. Honesty and transparency can go a long way in these conversations. A support inbox has its ups and downs. Be reasonable. 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