One in Seven Businesses Fear Negotiating Terms, Finds The better payment Practice Group

A Better Payment Practice Group (BPPG) survey has found that one in seven businesses is more afraid of negotiating terms than of suffering a bad debt. Larger businesses are almost as nervous as small firms, with 12% stating they fear negotiating terms most, compared with 15% of their smaller counterparts.

The poll, which was held on this website , asked businesses what they feared most: negotiating terms or suffering a bad debt. Of the 400 respondents, 15% opted for negotiating terms. The survey also asked respondents how many employees they had and found that larger firms, those with 50 or more employees, are almost as likely to worry about negotiating terms as small businesses. Of the larger businesses surveyed, 12% stated that they fear negotiating terms, while 15% of respondents with 50 or fewer employees admitted the same.

Rene de Sousa, member of the Better Payment Practice Group and representative of The Chartered Institute of Purchasing & Supply, said: “It is essential that buyers and sellers agree terms before they sign the contract to ensure that both parties know exactly what is expected of them and to prevent unnecessary disputes later. To make negotiating terms less intimidating, purchasers and suppliers should plan ahead by researching the other party, setting objectives and identifying possible concessions.

“Firms often delay preparing standard terms of trade because of the cost involved in using a solicitor. Although it is vital to use legal expertise when preparing contractual terms, businesses can reduce costs by using examples from their industry as the basis for their own terms, which can then be checked by a solicitor. Once standard terms are established, it will be easier to decide which points are open to discussion and which are non-negotiable.”

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