"Payment will be made 30 days from invoice date"

[Kevin Yeandel]

Dear all
What is the general/universal understanding of that?
Does it mean
1. the receiver should receive in their account the funds on 30th day or
2. the person sending the money will start the process 30 days after receiving an invoice or
3. too open to interpretation?

Should it be made clearer what that means since those are the actual words on a contractual agreement?

Thanks
Kevin

 

[KM-Tiger]

Depends on the context but it is a bit vague. Many would interpret that as "Oh good, I'll be able to stretch that out to 90 days, if needs be".

 

[Mpg]

Depends on the context but it is a bit vague. Many would interpret that as "Oh good, I'll be able to stretch that out to 90 days, if needs be".

Thats why it should read "Payments to be recieved 30 days from Invoice date. Interest charged daily thereafter at the rate of XX"

 

[Deleted member 59730]

I have used "Payment 30 days Nett"

It is fairly standard practice for it to mean payment at the end of the month following the month of the invoice. In other words the clock only starts ticking when the end of the month comes.

 

[seanstevens]

If it is for the contract then state that payment should be received within 30 days from the date of the invoice. Include a clause for interest even if you do not intend to use it. Just make sure your invoices clearly show the payment due date.

 

[Grantd]

The majority of businesses will only think of paying you 30 days net, so the clock starts ticking at the end of the month as atmosbob quite rightly pointed out.

I've found that sending a statement after exactly 30 days and calling 7 days before the due date based on a 'net monthly' invoices rapidly speeds things up.

Businesses tend to think...we'll pay them a couple of weeks after they start ringing. And will pay different suppliers on dramatically different terms dependent upon how much hassle you give them.

 

[Medicol]

We offer incentives for early payment.

Its better to be in our account at 5% less than have cashflow probs

 

[Deleted member 59730]

Some of my customers insist on a 5% discount for paying in six weeks, otherwise they take even longer. None have noticed that they are paying 6% more than all my other customers who pay nett.

 

[Medicol]

SSShhhh dont let then know the secret

Its a sad fact that known bad payers get LP tax added