How to Get Sponsors to Pay Faster than Net 90

DarshanTalks Podcast

Content provided by Darshan Kulkarni. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Darshan Kulkarni or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

4d ago 1:00

MP3•Episode home

Can I negotiate faster payment terms so I don't run out of cash flow? Many sponsor contracts set 90 to 120 day payment timelines. This, however, cripples cash flow for smaller sites. Now you can try to negotiate net 30 or at least milestone-based payments. That means that there's a startup fee paid upon contract execution, quarterly payments regardless of enrollment pace, but the truth is you're not going to get very far with it. Enforcement is just tough. Another tool is an interest-on-late payments clause. So even if you can rarely enforce it, it does act as a way to have companies sort of try to meet timelines. I suggest language requiring sponsors to pay within a set amount of time after invoicing, regardless of whether the CRO has been reimbursed by the sponsor. The leverage point is your enrollment speed. Sponsors will pay faster if you're delivering data. Stronger payment terms stabilize cash flow and reduce the need for credit lines or personal funding to cover payroll. Call, click, or email.

Support the show

www.kulkarnilawfirm.com

295 episodes

#Science #Society #Biology #Documentaries #Podcasting Education #DarshanTalks #Pharma #Medical Device #FDA #Law #Regulations #Guidance #Clinical Research #Advertising #Mergers #Acquisitions #M #Pharmacy