Hello folks,

 

I've just been reading an interesting post over on the Erskine Blog about payment terms and why they think that the standard '30 days' is not great for cash flow (no arguments from me there!). It seems that Erskine go with terms of 7 Days. Initially I thought that sounded a bit too...well, harsh....but having reflected on it I think it makes a lot of sense and I'm currently mulling over the possiblity of making a change to my standard terms accordingly.

 

Does anyone else use these kind of terms? I'm assuming 30 days is still very much the norm?

 

Just interested in opinions really

 

Lucy

7 days from me also.

 

80% of my clients have no problem with this, 10% need longer because of their rubbish payment systems or because they only have someone do their accounts one day a week sort of thing, and the rest are just a waste of my time.

 

If you think 30 days is bad, some companies like Boots will only agree to 90 day payment terms if I remember correctly!

I've always worked on any balance due within 30 days and had few problems. Most customers settle up in a week or so, some even pay within minutes of getting the invoice.

I've experimented with 15 day/2 week terms, but I find most established businesses have an accounts payable person/department with a policy to pay any invoice on 30 day terms no matter what it says on the invoice...

 

 

 

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St Albans Web Design

Web Design, SEO, Development, Email Marketing

This an interesting post about this subject on John O'Nolan's blog here.

14 days for me also. I use Ballpark to take payments and find that most pay pretty quickly.