Find out interesting insights with Claudia Mejia, Managing director , Ikigai Edge

Moderated by Srishti, Digital Transformation Consultant at Hyperbots

Don’t want to watch a video? Read the interview transcript below.

Srishti Rajveer: Hello, everyone! My name is Srishti Rajveer, and I’m a digital transformation consultant at Hyperbots. Today, I’m delighted to have Claudia Mejia as my guest. Thank you so much for taking the time, Claudia. It’s great to have you today.

Claudia Mejia: Hi! Srishti, it’s nice to be here with you.

Srishti Rajveer: Definitely. A little bit about Claudia for the audience—she is the managing director at Ikigai Edge, and today we’ll be discussing negotiating payment terms. So let’s get started. To start off, can you provide examples of the payment terms that should be negotiated with vendors?

Claudia Mejia: Well, there are several terms that can be negotiated. Let’s start with the period. You can negotiate 30, 45, or 60 days. Those are some typical terms you see in contracts. Also, early payment discounts—an example is a 2% discount if you pay within 15 or 20 days. There are also terms regarding installment payment options. Some contracts allow payments in installments. Another term would be payment methods—paying by check differs from paying electronically or by credit card, and those terms can include different types of fees. Another commonly negotiated term is volume. This helps foster long-term relationships, and depending on the volume, vendors may have tiered structures where you can move up or down. By addressing all these terms, you ensure steady relationships, making sure both the supplier and the vendor have a long-term engagement.

Srishti Rajveer: Understood, and that is extremely important. Now, can you outline the key factors that companies should consider when negotiating payment terms with vendors?

Claudia Mejia: I would say an important factor is understanding your organization’s cash flow. Knowing this helps you set certain terms. It’s also important to understand the financial stability of the vendor and how they can sustain the relationship throughout the contract period. Industry standards are another key consideration. Benchmarking your contract terms against industry norms ensures competitiveness. Lastly, think of these as long-term relationships. Stability for both the supplier and the vendor is crucial. At the end of the day, it’s about meeting business goals on both sides.

Srishti Rajveer: Absolutely. What are some best practices for negotiating favorable payment terms?

Claudia Mejia: I would say it’s important to do due diligence. Research and ensure you understand benchmarks and industry standards before entering negotiations. Understand your bargaining power. More importantly, approach negotiations with a win-win mindset. Make sure conversations are collaborative, aiming for mutual benefits. Favorable terms lead to longer relationships, which is essential. Documentation is also crucial—ensuring everything is documented means both parties always know where they stand and what expectations have been set.

Srishti Rajveer: Absolutely, that makes sense. This is extremely helpful. Can you provide examples of favorable versus non-favorable payment terms for different types of payment increments?

Claudia Mejia: Sure. Let’s talk about payment periods. For example, a favorable term could be a 2% discount if you pay within 10-20 days, also known as 2/20 net 60—if you pay within 20 days, you get a 2% discount. A more standard term, not necessarily unfavorable, would be net 30, where there is no discount for early payment, but it is fair and common regarding installment payments and flexibility matters. If you go past a certain threshold, you may incur additional interest or penalties. Penalties are another consideration—if a business misses an installment payment, it may accrue interest plus penalties. These factors impact cash flow, so it’s important to evaluate how these terms affect overall financial management.

Srishti Rajveer: Definitely something to keep in mind. How does Hyperbot’s Payment AI Co-Pilot assist in analyzing and optimizing payment terms across multiple vendors?

Claudia Mejia: The beauty of Hyperbot’s AI agent is its ability to analyze payments across all vendors. By doing so, it identifies patterns, benchmarks those patterns against industry standards, and provides insights into the best terms for each vendor. It also empowers companies to negotiate better terms. When you understand how vendors are operating, you gain leverage in negotiations. Additionally, predictive analytics allows the system to anticipate vendor behavior, helping businesses create proactive strategies. The AI agent provides real-time insights, ensuring businesses have the right data at their fingertips.

Srishti Rajveer: Understand, that is extremely helpful. How do you balance the need for favorable payment terms while maintaining strong vendor relationships?

Claudia Mejia: It all comes down to communication. If, for any reason, a company cannot meet the established payment terms, open communication with the vendor is key. Explaining the situation and providing a timeline for payment can make a significant difference. Rather than defaulting on penalties, proactive discussion ensures mutual benefit and fosters trust between both parties. At the end of the day, these agreements exist to protect financial health and build strong, trustworthy relationships.

Srishti Rajveer: Definitely. The key takeaway here is that communication is crucial. That brings me to the last question—what advice would you give to CFOs looking to enhance their payment terms negotiation strategies using AI tools like Hyperbot’s Payment AI Co-Pilot?

Claudia Mejia: I would say now is the time for CFOs to embrace AI tools. Specifically, hyperbots can integrate with financial systems, providing real-time insights into payment data, vendor behavior, and overall payment analysis. With this visibility, CFOs can make better-informed decisions, benchmark against industry trends, and improve negotiations. At the end of the day, when you have tools that provide real-time insights and benchmarking capabilities, you can negotiate more effectively and strengthen vendor relationships. So, my advice is to start embracing AI tools, integrate data, and experience the benefits firsthand.

Srishti Rajveer: Absolutely! This has been extremely insightful. With that, we’ve come to the end of today’s discussion. Thank you so much for joining us! A big thanks to our viewers as well. I’ll see you around—have a great day! Goodbye.

Claudia Mejia: Thank you!