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The Importance of Invoice Payment & Reviewing Trading Terms

February 28, 2024
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In today's challenging economic landscape, businesses are navigating uncertain waters. One critical aspect that demands attention is the review of trading terms. From providing insights into adjusting payment terms to prevent working for free and maintaining cash flow through upfront or progress payment arrangements, we explore why this process is more crucial than ever.

Understanding the Importance of Trading Terms

In challenging economic times, businesses must reassess their trading terms—the terms governing how goods or services are provided to customers. Traditionally, many operated on 30-day payment terms, but tightening economic conditions call for a closer look at these arrangements.

Avoiding Working for Free

The risk of providing goods or services without timely payment is real. H+A Legal emphasizes the importance of reviewing trading terms to avoid the detrimental scenario of working for free. As economic conditions tighten, it becomes increasingly vital to ensure payment for the value delivered.

Strategies for Ensuring Timely Payments

To mitigate the risk of delayed payments, businesses can consider various strategies. One option is shifting to a payment upfront model, where payment is received before delivering goods or services. Alternatively, businesses can establish progress payment arrangements for larger or longer-term engagements, ensuring a steady cash flow throughout the project duration.

Adapting to Economic Realities

The current economic climate necessitates adaptability. By reviewing and adjusting trading terms, businesses can better position themselves to weather economic uncertainties. H+A Legal stresses the importance of staying proactive and responsive to changing market dynamics.

In conclusion, the video underscores the critical importance of reviewing trading terms in today's economic landscape. By understanding the significance of these terms and implementing strategies to ensure timely payments, businesses can safeguard their financial health and resilience amidst economic challenges.

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William Buck has worked with H&A Legal for a number of years on a variety of matters and have achieved excellent outcomes. The team at H&A Legal have always listened to and demonstrated an understanding of our needs in providing astute advice, tailored to each situation. They are responsive and take a very commercial approach. I would not hesitate to recommend them.
Lynda Clark
William Buck
I can't speak highly enough of my experiences with H+A Legal - their specialist advice, efficient responsiveness and client centric solutions have been second to none.
Terry Panigiris
CBD Advisory
As a tech start-up, the legal component of our business was complex and required much attention to detail. They were, and continue to be, responsive, helpful and quick to resolve issues when they com up. H&A legal were a great decision for us as a legal partner and we would highly recommend them to any business looking for similar services.
Melanie Sellors
Mumli
I always have a sense of comfort when working with H&A Legal. I know myself and my clients are being well looked after. Our experience working with them has always been exceptional.
Kate Dennis
The Orbit Group
We have consistently been impressed by H+A Legal. We are always confident in their specialist advice, efficiency and the quality of work they do for us. Their services have assisted us to establish goals and plan for growth in our business.
Malcolm Devin
BY Group
I wasn't sure if it was worth engaging lawyers for my business, as I thought I could get by without them. Looking back, getting H&A Legal's on-going monthly support was the best decision I have made this year and has already opened up new opportunities for my business.
Raph Freedman
Lockeroom
H+A Legal have been nothing but accommodating and understanding in the day to day challenges that we face as a small business in these challenging and ever changing times. All matters addressed in a professional and prompt manner. Would recommend using the team.
Agi Hatjinikitas
Moofish
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