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hi everyone welcome to my channel my name is farah im the legal principal of prosper law were a boutique commercial law firm based in brisbane and we service customers across all of australia so were going to be talking today about payment terms and payment terms are particularly important for smaller businesses or sole traders or businesses that place a lot of value on their cash flow so what a good payment term is really depends on the size of your business the importance of cash flow and also whether you have a diversified client base so if you have lots of different customers um lots of different revenue streams you might not be concerned with any one particular client and i think what clients forget sometimes is that offering payment terms at all is a privilege its a privilege to receive any payment terms because as the vendor its akin to offering credit because youre fronting the goods youre providing the services up front and then the clients paying you for that afterward