Common use of Payment in Advance Clause in Contracts

Payment in Advance. If Flextronics has reasonable cause to believe that Customer may not be able to meet its financial commitments to Flextronics under the provisions of this Agreement, then Flextronics may require that Customer pay for all outstanding inventory within 30 days and that the payment terms for all future orders will be cash in advance until such time that Flextronics is satisfied that it is prudent to offer Customer more favorable payment terms.