When it comes to credit collection, many business owners struggle to determine the best approach for both their needs and that of their consumers. With so many factors to consider, including account history, your bottom line, and financial routines, it can be difficult to decide which invoice payment terms are the best fit. The following guide outlines what you need to know when determining invoice payment guidelines to ensure success and satisfaction when working with your customers. 

What Are the Different Invoice Payment Terms?

Essentially, invoice payment terms are how long your customers have to pay their bill after they’ve received it. For example, a Net 30 invoice payment term means your client has 30 days to pay their bill upon delivery. Although you can really craft this to be any length of time you desire, most consumers feel comfortable with rounded-out, well-known timelines; these may include Net 30, Net 60, Net 15, or even Net 7.

How Do You Determine the Right Terms for Credit Collection?

Although you may be tempted to use the same terms across the boards when dealing with every client, it’s more effective to look at each case individually to determine an approach that suits the unique needs of the client. For example, if you have a client who has worked with you for a long time, and you’ve built a solid foundation of trust, you might consider doubling their invoice payment terms to be easier to manage. If you’re sending out a hefty bill for a large project, consider breaking the payments up into multiple terms. 

If you’re having a hard time getting your client to meet their invoice payment terms, turn to the credit collection agents at Joseph, Mann & Creed in Twinsburg, OH. With almost 20 years of experience, these professionals have the experience and expertise needed to handle all of your tricky clients with grace and ease. Visit their website for more information on their credit collection services, and call (216) 831-5626 to schedule a consultation today. Follow them on LinkedIn for up-to-date news.