Payment Policies Miningwatchdog Marketplace
Henry Darius
Last Update há 6 meses
1. When Payment Is Due
Clearly outline the number of days a customer has after receiving an invoice before payment is due. Explicitly state if you’ll accept partial payment upfront and whether or not you’ll require a deposit before you start work.
You typically convey the invoice due date via “Net [##],” where the invoice date plus the number of days outlined in square brackets is the payment due date. For instance, Net 10 means the customer pays the amount due within 10 days of the invoice. Similarly, a Net 30 invoice is due 30 days after the invoice date.
2. Forms of Payment Accepted
Share the common payment methods you support. Standard methods include cash, check, credit card, debit card, and ACH/bank transfer.
If you’re unsure which payment methods you should offer, consider their pros and cons. For instance, cash is easiest to set up, but it means you’ll spend more time in accounting. On the other hand, credit cards are convenient but include merchant fees, which can eat into your budget. Bank transfers tend to have the lowest fees.
3. Discount Policies
Will you offer an early payment discount? If so, you’ll want to explain that discount in your policy. A discount on early payments can encourage customers to pay you early and help maintain your cash flow. For instance, you can give customers a 5% discount if they pay a Net 30 invoice within the first seven days.
Similarly, you may offer price matching against competitors to attract more customers.
4. Late Payment Penalties
While everyone wants to be paid on time, 59% of small and medium businesses have experienced late payments.
To encourage customers to avoid late payments, you may impose penalties if you receive payment after the due date.
Many U.S. states have their own laws governing late fees—so before you start charging your customers for late payments, make sure you understand the laws in your area. For example, in North Carolina, businesses may charge $15 or 5% of the total amount of the invoice, depending on which is greater.
Still, don’t go overboard. You want to keep customers. Typically, a penalty of $150-$750 works for most businesses.
5. Invoice Policies
When will you issue invoices, and when are they due? Keeping your invoice payment terms well documented will not only help you get paid on time, but it can also be helpful in case any invoice-related legal issues arise in the future.
Now that you understand what to include in your payment policy, let’s see how to pull all these elements together and develop a clear policy for your business payments.