In today’s B2B and B2C e-commerce world, offering net payment terms or selling products on an installment basis is becoming more and more popular. This type of payment plan gives customers time to pay without burdening them with high one-time payments.
Net 15 payment terms are a popular choice for business owners, as it gives customers 15 days from the date of purchase to make a payment. This 15-day window reduces customers’ stress and encourages timely payments while offering businesses more flexible payment options.
What is Net 15 payment terms?
Net 15 payment terms is a type of payment plan where customers are given 15 days from the date of purchase to make payments.
This type of payment plan is popular among businesses because it offers flexibility to customers while also encouraging timely payments. Additionally, net 15 payment terms can help businesses reduce their overall costs by reducing administrative time on collections and improving cash flow.
What kind of businesses should offer net terms?
Net 15 payment terms can be beneficial for any business that is looking to offer customers more flexible payment options.
For example, businesses that sell large or expensive items may benefit from offering net 15 payment terms, as it gives customers the opportunity to make payments over time rather than having to pay a large sum upfront.
Additionally, B2B Wholesale businesses that have a high volume of salesmay find net 15 payment terms more cost-effective and efficient in managing cash flow.
Regardless of the type of business you own, if you want to offer your customers more flexibility when making payments then net 15 payment terms could be an ideal solution.
How do you offer Net 15 Payment Terms?
When offering net payment terms, ensure that all details are clearly laid out in contracts or invoices sent to customers so there’s no confusion about when payments are due.
Additionally, communicate with your customers regularly and provide reminders before the end of the payment window to encourage timely payments.
Finally, be sure to have a collection process in place for customers who fail to make payments within the 15-day window.
Net 15 payment terms example
As an example, if you’re selling wholesale on your Shopify store and your customer places an order on August 1st, and the customer chooses to select net 15 payment terms, then the customer would have until August 16th to make their payment to you. If they fail to pay within that timeframe, then it’s up to your business to decide how best to handle late payments. This could include sending out reminders or contacting the customer directly.
In any case, having clear policies in place before offering net 15 payment terms can help ensure that payments are made in a timely manner.
Advantages of offering net payment terms on your website
1. Increased cash flow
By allowing customers more time to process payments, businesses can receive income on their goods and services immediately rather than waiting weeks or months for payment.
2. Improved customer relationships
Offering net 15 payment terms shows that a business respects its customers by giving them flexibility in how they manage their finances. This kind of gesture can help improve trust and loyalty between the two parties.
3. Easier accounting procedures
Net 15 payment terms also make it easier for businesses to track and manage their accounts receivable, making accounting procedures easier.
Where should I display net 15 payment terms in my store?
Net 15 payment terms should always be clearly displayed in your store’s checkout process and invoice. This way, customers are aware of the payment deadline and any late fees or penalties that may apply.
You can also include information about net 15 payment terms on other areas of your store such as product pages or shipping policies to ensure that all customers are informed.
By being upfront about your policies, you can help avoid confusion down the line and encourage timely payments from customers.
Summing Up…
Net 15 payment terms can offer businesses an effective option for managing their accounts receivable while also providing customers with more flexible payment options. By following best practices and making sure that both parties understand the details of the agreement, businesses can benefit from offering net 15 payment terms.
