payment terms
Definition
Payment terms are the agreed-upon rules between you and your customer about when and how they need to pay you for your goods or services. These rules spell out the due date, accepted payment methods, and any discounts or penalties tied to early or late payment.
Example
If your invoice says 'Net 30,' your customer has 30 days from the invoice date to send you the full amount owed.
Watch Out
Always put your payment terms in writing before you do the work, because a verbal agreement is nearly impossible to enforce if a customer decides not to pay.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.