How long should you leave your customers to pay an invoice?

In the business world, payment management is a crucial aspect that can significantly impact the cash of a business. The question of the payment period, that is to say the time granted to customers to pay an invoice, is therefore central. This article aims to explore the various possible deadlines, the legal aspect of billing, as well as strategies to optimize payments management and deal with delays.

The various payment deadlines

The payment period varies according to several factors, in particular the sector of activity, the relationship with the customer, the amount and current market practices. Standard deadlines often include:

• Immediate payment : used for real -time transactions (internet, shop, often for material)
• 30 days end of month : allows the customer to pay the invoice within 30 days of the end of the month of invoicing (majority in the B2B and in the sale of services: adapted to recruitment)
• Personalized days calculations : Some choose a specific number of days (45, 60, etc.) after the billing date (to be adapted according to your business model, if you have working capital, if you are high, etc.)

Legal aspect of invoicing

The legislation often supervises payment deadlines to avoid abuse. For example, in some countries, the maximum authorized time can be 60 days. It is crucial to find out about the laws applicable in your court to define a compliant credit policy. Be careful not to enter immediately in a legal conflict at least difference, it is frequent to exceed slightly according to the payment habits of the company or because of forgetting)

Optimal payments management

For effective management, we advise you to:

• Define a clear credit policy : Establish specific rules concerning payment deadlines and clearly communicate them from the start of the commercial relationship. Getting careless of these subjects for fear of approaching them is a serious error that will affect with more magnitude shortly after. Putting things clear beforehand and making sure it is for everyone is necessary. You don't want to waste time at all in legal procedures for bad payers.
• Use billing management tools : software can help follow invoices, calculate deadlines, and send automatic reminders. Automation will save you precious time and save you a lot of concerns! ;)
• Relaxation Payment : In the event of delay, a structured recovery procedure is essential. Start with friendly reminders before climbing the situation. Astuce: Do not go up immediately to the creed, to accuse your late customers will only turn them. Instead, pretend to be forgotten or proposal for payment solutions ("I see that the invoice settlement is a little delay, do you need to set up a schedule?”, Generally, nobody wishes to be considered bad payer).

Reduce payment deadlines

To speed up payments, consider the following tips:

• Incitations for fast payment : Offer discounts for early payments.
• Penalities for late payment : Delay costs can encourage customers to pay on time.
• Electronic invoicing : Reduces the deadlines for processing and sending invoices.
• Outsourcing your payments : certain payment solutions like Alma, pays you the amount billed, and takes care of recovering money from your customer. More recovery, more tensions because of late invoices, less concern.

Faced with payment delays

Despite all precautions, payment delays may occur. Here's how to face it:

• Proactive communication : contact the customer to understand the reason for the delay. It is really important to try to understand before accusing delay. You will strengthen your relationship with them and find a solution faster.
• Payment plan : If the customer is going through financial difficulties, offer a payment schedule, a postponement or another solution that suits him without putting your situation in danger.
• Legal appeal : as a last resort, legal measures may be necessary. Contact specialized lawyers.

Conclusion

The management of payment times is a delicate balance between maintaining good customer relations and ensuring healthy management of the company's cash. On average, companies tend to opt for a period of 30 days at the end of the month, but this standard may vary. It is essential to calculate the time suitable for your business, while remaining flexible and attentive to the needs of your customers. A well -defined credit policy, combined with proactive billing and reminders, can greatly contribute to the financial health of your business.