Payment terms

[Ldter]

Is there a place in this forum where I can find a typical payment term for IT contractors?
I think it should never be beyond 30 days from the date of invoice.
In my past experience, it's actually been shorter.

Any thoughts?

Thanks!

[eek]

Is there a place in this forum where I can find a typical payment term for IT contractors?
I think it should never be beyond 30 days from the date of invoice.
In my past experience, it's actually been shorter.

Any thoughts?

Thanks!

With an agency depends on whether they factor their invoices and then who they factor them with.

Sonovate pay within 5 working days
other factoring companies may take a month

End Clients may pay between 5 days from invoice ((some) Government clients) to 90 days plus.

[northernladuk]

I think it should never be beyond 30 days from the date of invoice.

Why do you think that when B2B payment terms can be up to 90 days?

Are you talking about agency to contractor or client to contractor? One factors, the others don't.

As you can see just from those two lines there isn't a typical. It varies.

[Ldter]

Why do you think that when B2B payment terms can be up to 90 days?

Are you talking about agency to contractor or client to contractor? One factors, the others don't.

As you can see just from those two lines there isn't a typical. It varies.

I think that because of personal experience and because payments should never arrive later than the time necessary to process the invoice.
So, for instance, if a company pays on a monthly cycle, I am fine with 30 days, but if they pay with a weekly cycle and they make me wait for 30 days, I don't accept it.
I'm not a bank..
In my experience up to 30 days it's typical.

[eek]

I think that because of personal experience and because payments should never arrive later than the time necessary to process the invoice.
So, for instance, if a company pays on a monthly cycle, I am fine with 30 days, but if they pay with a weekly cycle and they make me wait for 30 days, I don't accept it.
I'm not a bank..
In my experience up to 30 days it's typical.

But as we've said agencies usually pay within 30 days

B2B contracts especially those from larger companies can take far longer.

[northernladuk]

I think that because of personal experience and because payments should never arrive later than the time necessary to process the invoice.
So, for instance, if a company pays on a monthly cycle, I am fine with 30 days, but if they pay with a weekly cycle and they make me wait for 30 days, I don't accept it.
I'm not a bank..
In my experience up to 30 days it's typical.

You have to be very careful with your wording as there are different scenarios. There is B2C payments, B2B and then there are agencies who factor the payments so often you'll get paid paid well before the agency gets paid.

There is no one right answer. You just need understand the situation you are in.