Sample Letter to Change Payment Terms with Suppliers

I hope this message finds you well. I am writing to discuss a potential adjustment to our current payment terms. Our ongoing partnership has been invaluable, and we deeply appreciate the support and flexibility you’ve extended to us thus far. However, recent changes in our business environment necessitate a review of our payment arrangements to better align with our operational requirements.

Reason for Request: The primary reason for this request is to manage our cash flow more effectively. We have recently experienced [specific change or challenge, e.g., increased operational costs, shifts in market demand, etc.], which has impacted our ability to adhere to the existing payment schedule. Adjusting the terms will help us maintain our financial stability while continuing to honor our commitments to your company.

Proposed Changes: We would like to propose the following modifications to our payment terms:

• Current Terms: [Describe current payment terms, e.g., Net 30 days]
• Proposed Terms: [Describe new proposed payment terms, e.g., Net 45 days]

Benefits to Both Parties:

1. Sustained Business Relationship: By adjusting the payment terms, we aim to ensure that we can continue to do business together on mutually beneficial terms.
2. Improved Cash Flow Management: The revised terms will allow us to better manage our cash flow, reducing the risk of delays or disruptions in our payments.
3. Enhanced Efficiency: A modified payment schedule will enable us to allocate resources more effectively, ensuring timely and accurate payments moving forward.

We believe that these changes will not only support our financial stability but also strengthen our long-term partnership. We are open to discussing these terms further and are willing to consider any feedback or alternative suggestions you may have.

Please let us know your thoughts on this proposal. We are keen to work together to reach an agreement that serves both our interests. Thank you for your understanding and continued support.

Best regards,
[Your Name]
[Your Position]
[Your Company]
[Contact Information]