Make sure that your credit terms leave no room for doubt
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Cash is the life-blood of any business. If that life-blood is restricted the profitability will be impaired.
Many businesses make the initial basic mistake of not making credit terms dear. A business should have its own terms and conditions of trading. They may be RHA, FTA or other well known conditions and even if they are not it should make its credit terms clear.
Avoid use of ambiguous words. Unless you agree otherwise payment is due immediately on delivery of the invoice. Commercially, most firms have to agree some period of credit.
Also, try to avoid use of phrases like "net, monthly" or "net, seven days". Instead use words like "payment within seven days of invoice" or "payment on the 10th day of the month following the date of the invoice".
Penalise late payment by using words like "any sums not paid on time will bear interest at the rate of 3% above Lloyds Bank base rate".
Finally, make sure your customer knows your credit terms before you enter a contract. Remember, you cannot unilaterally change the terms of a contract.
If no credit terms are mentioned the money may be due at a time which is "reasonable in the industry" or based on previous dealings between the business and its customer—rind that may be too long for you!