Terms that suit a trade business
6 min readPayment terms are part of the quote, not something to work out afterwards. If the first time a customer hears "seven days" is on the invoice, they'll pay on whatever timeline they had in mind instead.
Long terms were designed for businesses that hold stock, not for someone who paid for materials three weeks before the invoice goes out. Shorter terms are normal in trade work and rarely questioned when they're stated up front.
Steps
- Put the terms on the quote, not just the invoice
- State the number of days and what starts the clock
- Say which payment methods you accept
- Say what happens if it's late
- Get the quote accepted in writing so the terms are accepted with it
That's the free lesson
Next up is Deposits and progress payments, and 5 more lessons in this course.
The rest of the Academy is included with QuoteTrades Pro, along with quoting, invoicing, scheduling and the rest of the platform.
Academy courses are practical training, not a licence or accredited qualification. Always work to the current Australian Standards, manufacturer instructions and the licensing rules in your state.