AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
The most common supplier terms in Nigeria are payment before delivery, cash or transfer on delivery, part-payment with a deposit, and credit terms such as 14 or 30 days after invoice. New buyers usually start on payment upfront; credit is earned by paying on time, consistently, with clear records. Agree terms in writing and pay on the day you said you would.
The terms you will meet
| Term | What it means | Who usually gets it |
|---|---|---|
| Payment in advance | You pay, then the supplier releases goods | New customers, imported or scarce stock |
| Cash or transfer on delivery | You pay when the goods arrive | Regular local purchases |
| Deposit and balance | Part now, the rest on delivery or completion | Custom orders, large orders, contractors |
| Net 7, 14 or 30 | Full payment due 7, 14 or 30 days after invoice | Established customers with a payment history |
| Consignment | You pay only for what you sell | Some distributors, new product lines |
| Early payment discount | A small discount for paying before the due date | Suppliers who need cash quickly |
'Net 30' sounds simple but the start date matters: 30 days from invoice date, from delivery, or from the end of the month? Write it down.
How to earn credit terms
Nigerian suppliers extend credit to people, not companies, until the company has a record. They want to know you will pay. Build that record deliberately.
- Pay upfront or on delivery for the first few months, on time every time.
- Pay from a business account in your business name, so the supplier sees a real business. Mixing personal and business payments makes you look less established.
- Send a payment advice with every payment, listing the invoices covered. See paying suppliers in bulk.
- Ask after three to six months for 7 or 14 days, then 30. Ask for a specific limit, for example credit up to ₦2 million outstanding.
- Offer something in return: a fixed order day, larger orders or a longer commitment.
Matching supplier terms to your own customers
The real issue is the gap between when you pay suppliers and when customers pay you. If you pay a supplier on delivery but give corporate customers 30 days, you are financing your customers. Map it out.
Worked example
Example: an office supplies dealer buys ₦3 million of stock a month on delivery and sells to companies on 30-day terms, often paid at 45 days. In any month, about ₦4.5 million is tied up in unpaid customer invoices. If she negotiates 30-day terms with her main supplier for ₦2 million of that stock, the gap narrows by ₦2 million. If she also gets customers to pay closer to 30 days with clearer invoices and reminders, the gap narrows further. See our invoice checklist for invoices that get paid faster.
Are early payment discounts worth taking?
Some suppliers offer a discount for paying early, for example 2% off if you pay within 7 days instead of 30. Work out what it is worth over a year. Example: on a ₦1,000,000 invoice, 2% is ₦20,000 for paying 23 days early. Over a year of such invoices that is a high return on your cash, often better than leaving it idle. But only take it if paying early does not leave you short for salaries, rent or stock. A discount that forces you to borrow at a higher cost elsewhere is not a saving.
Put it in writing
Many supplier relationships run on verbal understandings, which work until there is a dispute. A one-page agreement is enough:
- Prices or how prices are set, and how much notice is given for increases.
- Payment terms, with the start date defined.
- Credit limit, if any.
- Delivery times and what happens if goods are late or wrong.
- Returns and credit notes for damaged or short deliveries.
- Withholding tax: if you are required to deduct it, say so and commit to sending credit notes. See withholding tax on invoices.
Keeping your side
Late payment is the quickest way to lose credit terms and the supplier's goodwill. Pay on fixed payment days that fall before each due date. If you will be late, tell the supplier before the due date, say when you will pay and keep to it. Suppliers forgive a warned delay far more readily than silence. Keep invoices, payment records and credit notes together; the Nigeria Tax Administration Act 2025 gives the tax authority powers to access books and records, and a clean record is also your evidence in any dispute with a supplier.
When a supplier wants a deposit
Deposits are normal for custom or large orders. Protect yourself: pay the deposit to an account in the supplier's own registered name, get a written order confirmation with the delivery date and what happens to the deposit if they cannot deliver, and check the company first with our guide to verifying a Nigerian company before you pay.
Where Pryme fits
Paying suppliers from a Pryme Business Account keeps every payment in your business name with a record. The Finance agent can prepare payments ahead of due dates and remind you of upcoming terms; a person approves above the ceiling you set. Suppliers who need proof can receive a verifiable receipt through our partnership with VerifyDoc.ai.
Questions people ask
What does net 30 mean?
Payment is due 30 days after a start date, usually the invoice date. Agree in writing whether it runs from the invoice date, the delivery date or the end of the month.
How do I get credit from suppliers in Nigeria?
Pay upfront or on delivery for a few months, always on time, from a business account, with payment advices. Then ask for short terms and a specific credit limit.
Is it normal to pay a deposit to a supplier?
Yes, for custom or large orders. Pay to an account in the supplier's registered name and get a written confirmation of delivery date and what happens to the deposit if they cannot deliver.
What should I do if I cannot pay a supplier on time?
Tell them before the due date, give a firm new date and keep to it. A warned delay does far less damage than silence.
Sources
- Nigeria Tax Administration Act, 2025 (full text) · accessed Oct 2026
- Nigeria Tax Act, 2025 (full text) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.