An invoice is a confirmation that a service has been performed or a product shipped. While that may be the official definition, let’s not kid ourselves – we send invoices because we want to get paid. And to get paid, you need some clear payment terms on every invoice you send.
Yes, it’s important that your clients know the details of what they’ve bought from you – the amounts, dates, descriptions, quantities, etc. And it’s important they know how they can pay you – PayPal, cash or bank transfer. But what’s really important is laying out the rules for payment.
An invoice is a legal document that provides a proof of sale. Without any payment terms, how can anyone know if a client is behind on payment ?
Here are some popular terms you might want to use :
You can have different terms for payment, depending on your client. But no matter what terms you use, they must be clear, understandable and consistent. You should agree on the terms when you accept the order or sign the contract so clients are aware of what to expect and they’re not surprised when it comes time to pay.
To make invoicing easy, set up your payment terms in invoice templates. If you have multiple terms, create multiple templates. It’s far faster and easier to pick from existing than create from scratch each time.
If you take your terms seriously, your clients will too. Be clear of the consequences of a client not paying on time, whether it’s an overdue fee or pausing any other projects you’re working on for them until payment is made. If you’re invoicing for very large amounts, you might consider outsourcing to a formal collection process, but the cost and time involved might not be worth your while.
For clients who regularly pay late, you may want to consider increasing your prices to cover the additional time and effort it takes to follow them up. Depending on the size and value that client brings to your business, you might want to consider terminating your relationship with serial late payers.
Simply complete the form to receive valuable info and actionable tips for your business. Plus, you’ll hear from fellow merchants who use PayPal to help reach their goals.
We'll use cookies to improve and customise your experience if you continue to browse. Is it OK if we also use cookies to show you personalised ads? Learn more and manage your cookies