How to Handle:
“We need different payment terms”
Payment term requests are often negotiable and shouldn't derail a deal. Understanding the underlying constraint helps you find a solution that works for both parties.
Why Prospects Say This
Their cash flow requires different timing. Procurement has specific requirements. Budget cycles don't align with your billing. Enterprise finance departments have policies.
Best Responses
The Flexibility Response
“We're flexible on payment terms—what works best for you? Annual upfront, quarterly, monthly billing on annual terms? Let's find something that fits your finance team's preferences.”
Why It Works
Shows willingness to accommodate without giving away value.
Best For
Simple payment timing requests
The Trade-off Offer
“Different payment terms are possible. Here are the options: annual upfront gets you the best pricing, quarterly is the middle ground, and monthly billing is available at standard rates. What fits your cash flow best?”
Why It Works
Makes the trade-off transparent.
Best For
When pricing varies by payment terms
The Procurement Alignment
“Happy to work with your procurement process. What terms do they typically require? Net 30, Net 60? We work with a lot of enterprise clients, so we're used to accommodating different finance needs.”
Why It Works
Shows experience with enterprise procurement.
Best For
Enterprise deals with formal procurement
Do's and Don'ts
Do This
- Be flexible on timing when you can
- Understand their specific constraints
- Tie pricing to payment terms if needed
- Get any non-standard terms in writing
Don't Do This
- Let payment terms kill a good deal
- Give away significant value without trade-offs
- Miss cash flow implications for your business
- Agree to terms you can't actually support
Follow-up Questions to Ask
“What payment schedule works best for your finance team?”
“Is this about cash flow timing or procurement requirements?”
“What are your standard payment terms with other vendors?”
“Would aligning billing to your fiscal year help?”
Industry-Specific Variations
“We require Net 45 payment terms”
“No problem—we work with government clients regularly. Net 45 is standard for us. We'll include that in the contract and invoice according to your requirements.”
“We need monthly payments, not annual upfront”
“Cash flow matters for growing companies. We can do monthly billing on an annual commitment, which gives you the annual discount without the upfront hit. Would that work?”
Pro Tips
- Payment terms are usually the easiest objection to solve—be flexible
- Annual billing with monthly payment can be a good compromise
- Enterprise procurement often has non-negotiable requirements—learn them early
- Credit checks may be needed for non-standard payment terms
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