What do enterprise clients expect in terms of how they pay? Do we need to accommodate invoicing and purchase orders, and could things like offering net payment terms affect how we price (since it impacts cash flow)?

Enterprise clients typically expect a flexible, formalized approach to payments—one that includes traditional invoicing and the ability to handle purchase orders. As discussed in our saas pricing book, Price to Scale, these clients often negotiate specific payment terms (for example, moving from Net30 to Net60) to better align with their cash flow cycles. This means:

• They expect invoicing and purchase order processes that are robust and integrated, supporting the larger and more complex transaction cycles of enterprise deals.

• Extended payment terms, like net terms, can indeed have a direct impact on cash flow. Our book details how early payment discounts can serve as incentives to improve cash flow, while longer net terms might require companies to adjust their pricing strategy (often by increasing list prices or adjusting discount levers) to account for the delayed cash inflows.

• When negotiating contracts with enterprise clients, it’s important to factor in these terms—as they might offset some of the perceived discounting benefits by influencing overall unit pricing (as outlined in various examples in Price to Scale).

In summary, accommodating invoicing, purchase orders, and flexible payment terms is essential when dealing with enterprise clients. Adjusting your pricing strategy to reflect the impact of these terms on cash flow—whether by offering early payment discounts or adjusting net pricing—ensures that both parties achieve a balanced, value-driven deal.

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