Contracts Masterclass 2024

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  • 1.  thirty day payment terms

    This message was posted by a user wishing to remain anonymous
    Posted 12-22-2024 13:39:00
    This message was posted by a user wishing to remain anonymous

    Are thirty day payment terms still 'market' in supply agreements in the pharmaceutical/biotech area? As a supplier, can the supplier expect the buyer to pay  30 days of invoice? Not a 'custom' material/no IP really involved.  If 30 days still market, what are some options to push back at the multinational companies who want to purchase a 'widget' and pay with 90 days payment terms?



  • 2.  RE: thirty day payment terms

    Posted 12-23-2024 11:41:00

    Yes, thirty days is standard to ask - we've pushed back and gotten anything from 45 to 90 days, depending upon the vendor, the services, and many other things.  We often will do a trade, such as no late fees if we agree to a shorter payment term, or a shorter term if the vendor agrees to use our electronic invoice submissions and payment system.

    For physical products or supplies, you can try making it contingent upon receipt of the goods or the invoice submission date, whichever is later.  Or state that the invoice cannot be submitted until the goods/supplies/products are received.

    It's a negotiation point.

                          Margo Lynn



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    ____________________________________________________
    Margo Lynn Hablutzel, JD, LLM, CISSP®
    Chair Emerita, ACC Intellectual Property Network
    Publications Coordinator, ITPeC
    Senior Counsel - Gainwell Technologies
    margolynn.hablutzel@gainwelltechnologies.com
    p: +1.816.514.7891 / m: +1.919.441.2945

    The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute a legal opinion or legal advice. If you want legal advice, that is why we have outside counsel.
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  • 3.  RE: thirty day payment terms

    Posted 10-20-2025 11:14:00

    I have also seen a hybrid model for payment terms (if your payments system allows it) wherein you have a shorter term for reimbursables vs services and/or equipment. By offering this a compromise position, it assures the supplier that they will not be "out of project" for the longer payment term.



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    The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute a legal opinion.
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