Planning on opening new business where we service customers at a plant when needed. Concerned about payments from clients. What time frame do MOST customers pay in? What is best way to collect payment, getting a PO before work is started? - How soon should they pay, and is asking the AP department for their payment schedules the best way to go? - Any other tips for getting paid on time...... AP Professionals - please forward advice........ Thank You -
2006-09-28 14:43:57 · 1 answers · asked by Tara J 1 in Business & Finance ➔ Small Business
How fast you want to get paid is up to you. Generally, companies pay just longer than your actually terms. If your terms are Net 30, most of your customers will pay in 35-40 days. Some will pay on time but most won't. So, if you want your money in 30 days, say your terms are Net 20. If you want your money in 10-15 days, say "Due Upon Receipt". Also, the bigger the company, the slower they pay. I received a check today (9/29) from an hospital that was due on 9/1. They cut the check on 9/15 but they didn't mail it until 9/25. Experiment with your terms to see what works best for you.
2006-09-28 15:30:12 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋