In episode one of Sage Startup Business Essentials, accountant Nicky Larkin explains everything you need to know about how to establish payment terms, while Stefan Fritz gives his top tips for how small businesses can get paid faster.

Payment Terms Overview for Small Businesses

In this video, I provide an overview of payment terms that founders and owners of small businesses and start-ups should be mindful of. Understanding payment terms and the effect they can have on your business’ cash-flow is critical.

The links for the references are posted below. I hope you find this video useful and would certainly appreciate your feedback in the comments section.

Also, if there is anything missing here that you think would be useful for founders, entrepreneurs, and business owners then by all means please let us know. Founder Cave is about sharing information and experiences and supporting each other on our entrepreneurial journey so we would love to see that community engagement here! 

How to Establish Payment Terms


If you’re wondering how to establish payment terms with a customer, there are a few key things to think about.

People always focus on the price, yet they get confused when asked, “so what are your payment terms?” And when you get asked that question, you need some answers ready.

Payment terms are all about offering someone credit. And that means, are they good for it?

Because once you issue an invoice and don’t take cash for your goods and services at the point of sale, you are offering your customer a line of credit. And that means you take on the risk of them paying late, or worse, not at all.

For many businesses, especially in the B2B world, payment terms must be negotiated, alongside the price. With B2C businesses, there often is more of an opportunity to dictate good terms, for you the business owner, right from the start.

Examine your cash flow
We asked accounting expert Nicky Larkin for her opinion on how to establish payment terms. She has wide experience in setting up finance teams and systems, managing all aspects of financial and management accountancy, installing best financial practices,s and gaining company financing.

Nicky told us: “To establish payment terms, its key to look at your cash flow, because it’s really important to ensure that you have sustainable cash to grow your business, it’s very easy to have a profitable business, but actually you could be over trading and your growth could be stunted because you have a lack of cash.”

“Being an affiliate marketer is very cost-effective. You don’t have to put much money in an affiliate program in order to gain a lot.“ – Russell Brunson
“Affiliate marketing is an excellent opportunity if you truly believe in the value of the product you’re selling. Because many times, you can make money off of something you would probably recommend anyway.” – Neil Patel
“Use 2nd Tier contests and referrals to grow your pool. You don’t know everyone—let your network introduce them to you!” – Amber Spears


Learn More about Crucial Construct Academy: Click Here Now! 


Learn More about the Academy here: Click Here Now!

The Crucial Constructs Academy is a Free Video Training Course Available only to our Readers and Subscribers.  A thorough and detailed training available to you.  Find out more about it here.  Click and Learn


Marketing online classroom