However, if you frequently send high-cost invoices or know your customers generally have difficulty making payments before the end of the month, go with “Net 45” (or higher) to provide them with an ample opportunity to settle their outstanding balances.Īdditionally, think about the payment methods you want available. If you have a high volume of customers with relatively low-cost invoices, consider shorter payment terms. On the other hand, flexibility always pays dividends in customer loyalty. Getting paid now means dollars in your pocket. Why should I adjust my Invoice Payment Terms?Īs the business owner, it’s imperative to strike a balance – you want to get paid in a timely manner, but you also want to establish reasonable payment terms for customers. Even simple things, like net payment terms, set expectations and tone for all parties involved. Adjust your payment terms to fit the pace of your business, industry, and your relationship with your customers.
“ Net” refers to the number of days before the expected payment. Invoice p ayment terms are an agreement between you and your customers regarding when invoice payments are due.
How soon do you want to get paid after sending an invoice? How long do you want to give customers to pay their outstanding invoices?
