Trade contractors - how to improve supplier payment terms
Friday 22nd August 2025
Last updated: 8th October 2025

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Cash flow challenge: Suppliers often demand upfront or tight payment terms, leaving little working capital for our other project costs.
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Perfect for: Trade contractors managing multiple supplier relationships who need more flexibility in how and when payments are made.
Novuna helps contractors secure funding solutions that ease pressure from strict supplier payment terms, either through our award winning in-house service or by comparing the market to find the best fit for your business. We compare providers, help you apply, and make sure you get the right deal to keep projects moving.
Why supplier payment terms matter
For trade contractors, cash flow is often squeezed between long client payment schedules and strict supplier terms. Many suppliers want deposits or payment within 30 days, while clients may take 60 or 90 days to pay. This gap leaves contractors covering the difference.
Practical ways to improve terms with suppliers
- Build strong relationships: Reliable communication and consistent orders can give you leverage to request longer payment terms.
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Negotiate deposits and staged payments: Rather than paying everything upfront, suggest smaller deposits followed by staggered payments that match your own cash flow.
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Consolidate supplier orders: Placing larger or more regular orders can give you bargaining power to negotiate better terms.
- Offer proof of future work: Suppliers may agree to extended terms if they see evidence of upcoming projects that guarantee continued business.
- Use early payment strategically: If you can, pay one invoice early to show goodwill - this can strengthen your case when asking for extended terms on future orders.
Funding options if terms are too strict
Even with good negotiation, suppliers may stick to rigid terms. That’s where funding solutions can help:
- Trade finance: Pays your suppliers upfront while giving you longer to repay.
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Invoice finance: Unlocks cash tied up in unpaid client invoices, so you can pay suppliers without delays.
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Short-term business loans: Provide working capital for bulk supplier orders or urgent costs.
How Novuna Business Cash Flow can help
We support trade contractors in managing supplier relationships by ensuring cash is available when needed. Whether you’re negotiating terms, paying deposits, or covering large material orders, we’ll compare providers to find the most flexible funding solution for your business.