For small eCommerce and DTC brands, cash flow is king. One of the most effective ways to improve your working capital and scale faster is by securing flexible payment terms with your suppliers. But as a small brand, negotiating these terms can feel daunting—especially when suppliers are used to dealing with larger, more established companies. In this article, we’ll break down actionable strategies to help you secure flexible payment terms, strengthen supplier relationships, and set your business up for sustainable growth.

Why Flexible Payment Terms Matter

Flexible payment terms—such as net 30, net 60, or even net 90—give you more time to pay your suppliers after receiving goods. This breathing room can be a game-changer for small brands, allowing you to invest in marketing, inventory, and operations without tying up precious cash. For eCommerce and DTC brands, improved cash flow means you can respond faster to market trends and customer demand.

However, suppliers often prefer upfront or short-term payments, especially when working with newer or smaller brands. So, how can you convince them to offer you more favorable terms?

Build Trust with Suppliers

The foundation of any successful negotiation is trust. Start by demonstrating your reliability: pay your invoices on time, communicate proactively, and be transparent about your business goals. Share your growth plans and order forecasts to show suppliers you’re committed to a long-term partnership. The more confidence a supplier has in your brand, the more likely they are to extend flexible payment terms.

Leverage Data and Technology

Use data to your advantage. If you have a track record of timely payments or growing order volumes, present this information during negotiations. Many sourcing managers now use AI-powered platforms to automate supplier management and track payment histories. These tools can help you present a compelling case for why you deserve better terms, and streamline the negotiation process.

Negotiate Creatively

Don’t be afraid to propose creative solutions. If a supplier is hesitant to offer net 60 terms, suggest a gradual approach—perhaps starting with net 30 and increasing as your relationship develops. You can also offer something in return, such as larger order volumes, longer contracts, or faster reordering cycles. The key is to frame the conversation as a win-win: flexible payment terms help you grow, which in turn benefits your supplier.

Highlight Mutual Benefits

Suppliers want to work with brands that are growing and reliable. Emphasize how flexible payment terms will enable you to place larger or more frequent orders. Explain how improved cash flow will allow you to invest in marketing and drive more sales, ultimately increasing your supplier’s revenue. When suppliers see the bigger picture, they’re more likely to accommodate your request.

Use AI-Powered Sourcing Tools

Modern sourcing platforms can automate much of the supplier management and negotiation process. By centralizing communication, tracking payment histories, and providing data-driven insights, these tools make it easier for small brands to secure flexible payment terms. AI-powered solutions can even recommend the best suppliers based on your payment preferences and risk profile, saving you time and reducing friction.

Stay Professional and Persistent

Negotiating payment terms is an ongoing process. If a supplier says no initially, don’t be discouraged. Continue building the relationship, demonstrate your reliability, and revisit the conversation after a few successful transactions. Persistence, professionalism, and clear communication are your best allies.

Conclusion

Securing flexible payment terms as a small brand isn’t just about negotiation—it’s about building trust, leveraging technology, and demonstrating your value as a partner. By following these strategies, you can improve your cash flow, strengthen supplier relationships, and set your business up for long-term success.

Want to automate this process? Meet Made AI — your AI-powered sourcing assistant.