Payment Within 90 Days = Payment Optional: UAE Contract Reality

    Are you factoring in the true cost of extended payment terms when dealing with UAE-based clients? Many international creditors assume a standard 30 or 60-day payment cycle, but the reality in the UAE can be significantly different. This video cuts through the assumptions, revealing a critical contractual nuance: 'Payment within 90 days' often translates to 'payment is optional.' For CFOs and Accounts Receivable professionals managing global portfolios, understanding this distinction is paramount. It impacts your cash flow forecasting, the risk profile of your receivables, and ultimately, your bottom line. Ignoring this common contractual clause can lead to prolonged disputes, increased collection costs, and missed opportunities for growth. This content will equip you with the knowledge to navigate these complexities and protect your business interests.

    Key Takeaways

    • Recognize that '90-day payment' clauses in the UAE can signal optionality, not obligation.
    • Proactively assess contract terms to identify and mitigate risks of delayed payments.
    • Implement robust collection strategies tailored to the specific legal and commercial landscape of the UAE.
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