Spot buy center and their clients have contractual agreements. Every invoice from spot buy center sent to one of their clients is payable as defined in the contract
spot buy center won’t invoice prior to the delivery date or the date of the event.
What about the payment terms between spot buy center and their suppliers?
We use a standard payment term of 30 days. Since our cash flow is as important as our clients’ cash flow, payment terms are an import topic during our negotiations.
What about pre-payments?
We often receive questions to immediately pay a supplier without the involvement of spot buy center. If spot buy center wasn’t involved in the negotiations, spot buy center will pay the supplier on a 30 day payment term (unless contractually agreed otherwise).
To clear things up, the ideal process is as follows:
- Submit a webform with your request
- Spot buy center scans the market to find a supplier according to your specifications and negotiates a price and payment term
- The client picks one of the proposals
- Spot buy center orders the desired solution at the supplier when the client’s po is approved and send to spot buy center
- The supplier sends his invoice to spot buy center
- spot buy center invoices the client
- spot buy center will pay the supplier on the negotiated payment term
- Client pays spot buy center as defined in the contractual agreement
Often we receive a PO with a payment term negotiated by our client. This should be the exception flow, keep in mind during your negotiations that spot buy center will pay the invoice on minimum 30 days net (unless contractually agreed otherwise). If spot buy center wasn’t involved, please inform the supplier about our minimum payment terms to avoid delivery problems.