Payment Terms

Payment terms define when and how payments should be made for products or services. These terms are typically specified in contracts and invoices, establishing the payment schedule and acceptable payment methods.

Common payment terms include:

• Net 30 (payment due within 30 days)
• Payment upon receipt
• Milestone-based payments
• Early payment discounts

Clear payment terms are crucial for maintaining consistent cash flow and setting proper expectations with customers. They form a key part of the billing agreement between a service provider and their customers.