This contract section specifies payment terms, late fees, and travel and expense reimbursement. There's a big difference between getting paid at "Net 30" versus "Net 90" and if you're not careful, provisions in this section could cause large cash flow issues for you down the road. Know what you're agreeing to and how those payment terms impact when you get your money.
- A contract's payment terms section…covers payment terms, late fees,…and travel and expense reimbursement.…Payment terms specify when payment is due…and if there are any discounts for early payment.…You may see things like net 45, net 60,…210, net 30,…those mean full payment is due in 45 days, 60 days,…or the client gets a 2% discount…for paying within 10 days…or they pay you the full net amount within 30 days.…
Payment terms are sometimes negotiable…and some big companies have provisions…for small businesses to get paid more quickly.…Be sure to ask your client if that's a program they offer.…Late fees specify when fees begin…if the client is late paying you.…It also specifies how much the fees are…and how they accrue.…Note that many large customers will insist…that they don't pay late fees.…Accept this provision at your own risk…because some clients can take a very long time to pay you.…
Travel and expense reimbursement policies…will usually be set by the client.…You should expect to follow the same travel…and expense guidelines their employees follow,…
- Major and minor contracts
- Registering as a supplier
- Setting pricing, payment, and other contract terms
- Insurance requirements
- Defining your project
- Negotiating the contract
Skill Level Intermediate
1. Start the Contracting Process
Register as a supplier2m 31s
2. Understand Contract Elements
3. Define Your Project
4. Negotiate the Contract
Next steps1m 18s
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