Are faster payments breaking old-school business bonds, or are they making them stronger? Let’s talk about it.

“90 days? Arre, yeh toh apne rishtedaar jaisa hai!”

If you’ve ever done business in India, you know this vibe. Long credit terms weren’t just about money—they were about trust, connection, and that warm cup of chai shared over a handshake deal. You’d walk into your supplier’s office, chat about life, and walk out with goods worth lakhs, no questions asked.

“90-day credit” wasn’t just a term. It was family.

But lately? Things are shifting. The buzz is all about 30-day payments. Some folks are even pushing for 15 days! And it’s not just the big corporates - small traders in Surat, packaging units in Pune, and auto part makers in Coimbatore are all jumping on board.

So, what’s the deal? Is this change killing the soul of business, or is it breathing new life into it? Let’s unpack this together.

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The Moment It Hit Us

At JITSY, we started noticing this shift a couple of years ago. During a routine catch-up with a supplier, we heard something new:

“Bhai, 90 din ab mushkil hai. 30 din mein paisa chahiye.”

There was no anger in his voice—just worry.

This was post-COVID, when everything felt like a gamble. Prices were swinging like a pendulum, and planning for next month? Good luck. For suppliers, tying up cash for 90 days wasn’t just risky—it was a survival issue.

One of our customers, a packaging business in Pune, felt this hard. They’d always leaned on 75-90 day credit terms. But suddenly, their polymer supplier said:

“What if prices crash next month and I’m still waiting for your payment? Kaun uthayega yeh risk?”

The trust was still there. But the world had changed. And so had the rules.

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The Hidden Price of “Free” Credit

Here’s something we learned from digging into JITSY’s data: that “free” 90-day credit? It’s not free at all. Suppliers often bake in 8-12% extra into their prices to cover the wait.

One of our auto parts buyers found this out the hard way:

“Same supplier, same material. 90-day price? ₹87/kg. 30-day price? ₹82/kg. That ₹5/kg was sneaking up on us!”

Suddenly, they realised: faster payments weren’t just about cash flow. They were a strategy to save money and stay competitive.

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The Mindset Makeover

Old-school thinking went like this:

• Long credit = “We’re in this together.”
• Short credit = “You don’t trust me.”

But the new vibe? It’s flipping that script:

• Fast payments = “You’re reliable, let’s do more business.”
• Long credit = “Hmm, maybe too risky.”

We heard this from a young textile entrepreneur in Coimbatore:

“My dad wasn’t thrilled when I switched to 30-day terms. But guess what? During a raw material shortage, our suppliers prioritised us. They said, ‘You pay on time, so we’ve got your back.’”

The old ways aren’t gone—they’re just growing up.

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Tech’s Sneaky Role in All This

Back in the day, paying someone was a hassle. Cheques, bank visits, endless follow-ups. A 90-day cycle made sense because payments were slow.

Now? IMPS, NEFT, RTGS instant notifications—it’s all a breeze. Payments are quick, trackable, and stress-free. The tech excuse for long credit is gone. What’s left is a choice: do you want to pay faster?

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Faster Payments, Happier Supply Chains

Here’s the cool part we’ve seen at JITSY: when buyers pay in 30 days, the whole supply chain levels up. Suppliers turn over stock faster, deliver quicker, and even share insider tips about the market. It’s like everyone’s running a relay race instead of a solo marathon.

One PP corrugated box maker told us:

“Since we moved to 30-day payments, our suppliers treat us like partners. They warn us about price hikes early, so we’re never caught off guard. That’s a game-changer.”

Efficiency builds trust. And trust? That’s the glue for stronger relationships.

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Okay, But It’s Not All Rosy

Let’s keep it real—faster payments aren’t always easy. If your customers are still paying you in 60 days but your suppliers want cash in 30, that’s a tight spot.

And for some, long credit is more than business—it’s personal. Changing terms can feel like breaking a promise. Plus, when competitors start offering faster cycles, the pressure’s on to keep up.

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Finding the Sweet Spot

The good news? Smart businesses are getting creative:

• Tiered Pricing: Pay in 30 days for a better rate, or take 60 days at a slightly higher price. Win-win.
• Seasonal Flexibility: Looser terms in slow months, tighter when demand spikes.
• Reward Good Behavior: Pay on time consistently? Unlock better credit terms.

It’s not about fighting the change—it’s about shaping it to work for you.

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The Bigger Picture

This isn’t just about payment terms. It’s about how businesses show up for each other.

Looking ahead, we’re heading toward a world where your payment history could act like a business credit score. Suppliers might check how reliable you are across platforms and offer terms based on that. Dynamic, real-time deals are closer than you think.

At JITSY, we’re already building tools to make that future seamless.

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Why We’re So Excited About This at JITSY

Because we believe you shouldn’t have to choose between strong relationships and smart finances.

JITSY isn’t just a platform for raw material deals—we’re creating a space where trust, speed, and transparency come together. Here’s how:

• Suppliers list clear prices based on payment terms.
• Buyers see exactly what each credit choice costs.
• Payments are quick, trackable, and hassle-free.

The result? Better prices, faster cycles, and relationships that last.

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One Last Thought

This “Credit Cycle Shift” isn’t about leaving old-school trust behind. It’s about proving trust in a new way. Sometimes, paying faster says more about your commitment than a 90-day promise ever could.

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We’d Love to Hear From You!

• How’s the shift to faster payments going for you?
• Have shorter credit terms strengthened your supplier bonds or made things tricky?
• What’s the payment sweet spot you’ve found?

Drop your thoughts below or swing by www.jitsy.in to see how smarter payments can build stronger partnerships. At JITSY, we’re all about trust that’s backed by action, not just words.