DarshanTalks Podcast
Welcome to DarshanTalks!
We demystify fraud for legal, regulatory, and compliance essentials in the life sciences and pharmacy industries. Through engaging 15-30-minute interviews with influential change makers, short educational regulatory defbriefs, and 60 second audio takeaways, we unveil the strategies behind bringing drugs and devices to market—and keeping them there!
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We focus on life science issues involving medical affairs, marketing and advertising, and clinical research so that you can learn about the industry, enhance your business and grow your career.
DarshanTalks Podcast
How to Get Sponsors to Pay Faster than Net 90
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.
www.kulkarnilawfirm.com
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.
