Lara GuevaraSupply Chain expert (Product and Service)

Milestone Based Supplier Payments

7 Sept 2026 · 1 min

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0:30

Lara Guevara argues for tying supplier payments to actual work milestones instead of calendar dates. Pay when quantities are completed or materials confirmed, not on day 30 or day 60. This protects your cash flow and gives you leverage when a supplier falls behind.

A lot of supplier agreements release money on a schedule, day 30, day 60, regardless of what's actually been confirmed. Tie it instead to something you can verify, a quantity completed, a materials confirmed, whatever milestone genuinely matters for your product. And that protects your cash and it gives you real leverage if something's behind, which is exactly when you need leverage and exactly when you usually don't have any.

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