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will ensure that that the vendor is clear about what he or she is paying for and the invoice has a better chance of getting paid on time. Date of goods receipt, description of goods delivered, price per unit, total price, tax amount etc. Politeness creates a positive image of the company and increases the likelihood of getting paid on time.Ī detailed description of the invoiced items e.g. Friendly phrases like ‘Please make the payment on time’, ‘Kindly pay your invoice within XX days’ and ‘Thank you for availing our service’ can increase the payment probability by more than 5 per cent. It is important to come across as polite and professional while wording your invoice. Here are 5 tips for writing effective invoice payment terms

Hence, the need arises for optimal payment terms and clarity in payment term representation on invoices. This is especially challenging for small businesses or start ups who cannot afford the payment lag. Payment delays can disrupt the cash flow resulting in shortage of cash that is required to purchase raw materials in order to manufacture the end products and / or grow the business through acquisition or merger. as well as funds for continued expansion. Any business requires a steady working capital to meet its operational expenses like salary, logistics etc. In this post, I’ve explained how to write invoice payment terms that can help you get paid faster.Ī payment term indicates the number of days that are available to the client to pay for the goods or services that have been rendered by the supplier.

At ProfitBooks, we’ve seen many businesses suffer from late payments due to improper invoice payment terms. Sometimes, your invoice is the last communication that you have with your client and its very important to leave lasting impression.