Freshbooks is online billing software that looked at their data to analyze what payment terms/wording gets their clients paid the fastest. They analyzed the wording used to describe the payment terms to customers and compared each wording with their average collection time in days.
The results aren’t necessarily surprising – use simple language and be polite – but the fact that the words used in your payment terms actually does make a significant difference in days to get paid and % of invoices collected is pretty interesting! Every little edge helps, why not take a look at their results and make some simple changes to help your cash flow.
Freshbooks recommendation of the most effective payment terms? Use something along the lines of:
“Thank you. We really appreciate your business. Please send payment within 21 days of receiving this invoice.”
Click below to read the complete article and see the full results: https://www.freshbooks.com/blog/2010/03/02/the-best-invoice-payment-terms-to-help-you-get-paid-faster-and-more-often/
