The study emphasises the financial strain on agencies when clients push for extended payment terms, well beyond the industry-recommended 30 days. Such extensions can compel agencies to take on loans or deplete cash reserves, jeopardising their credit ratings and competitiveness.

Extended terms create a 'ripple effect,' damaging the entire marketing value chain and inflating consumer costs. Agencies are less likely to prioritise clients who insist on extended payment terms, affecting the quality of creative work and services rendered.

The paper serves as a guide for agencies to firmly decline extended payment terms, despite the risk of souring client relations. It argues that capitulating to such terms is unsustainable and ultimately harmful to both agencies and clients.