“Pay Whenever” Is Not a Payment Term

Written by James Sanders

“Net 30” sounds straightforward. You mean payment is due in 30 days. Your customer apparently means 30 days after the invoice clears accounting, survives a management review, and returns from a brief spiritual retreat. That is why getting paid should begin before the work does.

As we kick off our “You Made the Sale. Now Get Paid.” series, the first question is simple: Are payment expectations clear before anyone starts working?  It is easy to focus on landing the customer and leave the details for later. But “we’ll work that out” is not much of a payment policy.  Before committing time, materials, or staff, address a few basics:

• What is due upfront? Consider whether a deposit or advance payment makes sense, particularly for new customers, custom orders, or work requiring substantial initial expenses.
• When are later payments due? For longer projects, establish payment milestones rather than leaving the entire balance until the end. Define those milestones clearly.
• What starts the payment clock? Invoice date, delivery, completion, and customer acceptance are different events. Avoid leaving the trigger to interpretation.
• What does the customer need to process payment? Confirm the billing contact, purchase-order requirements, submission portal, and supporting documentation before the first invoice gets rejected for administrative reasons.
• What happens if payment is late? Address available remedies in the agreement, with appropriate legal review. Do not assume a late fee printed on an invoice gives you rights the customer never agreed to.

Put the terms in the proposal, contract, or other written agreement the customer accepts—not merely in the invoice sent after the work is finished. And make sure your sales and accounting teams are working from the same playbook.

Clear terms will not turn every slow payer into a model customer. But they can eliminate avoidable confusion and give your team a better starting point when payment does not arrive.

Next week: keeping “just one more thing” from becoming several hours of free work.

Because you agreed to serve the customer—not sponsor them.