If the client doesn’t make the payment immediately — whether by credit card, e-check, wire transfer, or online service payment — the seller has the right to repossess the goods of intellectual property.
While this term is beneficial for the business owner since it speeds-up the payment process, it’s unpopular among some clients and customers since they’re afraid that they won’t have the cash to cover the bill.
Because this term can be confusing to both accounts payable teams and clients alike, it’s suggested that you use a term that is more clear, such as, “Days” instead of “Net.” Furthermore, to keep your cash flow positive, use shorter terms like, “Please make payment within 10 days.”A term such as “Net 30” requires the client or customer to make a payment within 30 days.
To provide for an equitable, cost-recovery process, ARIN charges an initial transaction fee for the registration or transfer of Internet Protocol (IP) addresses and Autonomous System Numbers (ASNs), and an annual fee for ongoing registration services. The ARIN Fee Schedule details information on all fees, their applicability, and any current waivers.
When you have this fixed payment schedule, you can easily create a budget and make financial forecasts so that you prevent any cash flow problems.
In other words, the success of your business may depend on the invoice payment terms that you create when sending out invoices.
To receive a greater response, however, rephrase this term so that it doesn’t confuse the client.
A simple phrase like, “Please pay within 10 days and save 2 percent” will make the offer perfectly clear and concise.