Payment terms are an area in the RFQ process which is often overlooked or forgotten. Some commonly used payment terms would be Net 30 days, 2%/10 Net 30 days and there are many more. (To help get a better understanding we have included a glossary of payment terms you can download for free at the bottom of this post). So, what do these imply and is it something a Buyer should be paying attention to as part of the award process?
When generating a RFQ or RFP, most buyers will place the majority of their efforts on the product, FOB Point and other commercial aspects of the quotation and doing such is absolutely right but one evaluation point which is often overlooked or not considered in the overall award process are the payment terms. Buyers will often accept or assume the standard Net 30 days offered is not worth analyzing. [Read more…]