Paying invoices is an essential step in any commercial relationship, whether it is a transaction between professionals or between a professional and an individual. Payment deadlines, settlement procedures and penalties for non-payment are crucial elements to understand in order to avoid misunderstandings and ensure that business runs smoothly. This guide explains everything you need to know to effectively manage your bill payments.
One of the most important aspects in any business relationship is to clearly establish the terms of payment. These conditions must be specified as soon asIssuance of the invoice and formalized in a contract or prior agreement between the parties. They define the terms of payment, the Invoice amount, the payment term as well as the possible late payment penalties in case of non-payment on time.
Payment terms should include the following information:
The terms of settlement should be detailed and unambiguous. For example, if you want a cash payment, specify it clearly. If you are accepting payments on due date, specify the due date Or the date of payment specific. Finally, it is recommended to add the mention” bill payable upon receipt ” or” payment within 30 days ” according to your agreement.
The payment term depends on the type of business relationship and the agreement reached between the parties. En france, the general rule states that the payment term for a invoice between professionals should not exceed 30 days After the reception of the invoice, unless another deadline has been negotiated. This period may be specified in the contract or by agreement between the parties.
When you issue an invoice between professionals, the date of issue of the invoice And the date of receipt of the invoice determine the starting point of the payment term. By default, the 30 days apply. However, the commercial contracts may agree on a longer period of time, in particular 45 days end of month or 60 days maximum after receiving the goods or services.
In the case of a transaction with an individual, the situation may differ. Les payment terms between a professional and an individual are often shorter. In general, professionals may require a cash payment or a payment to reception to ensure prompt payment of the bill. The specific conditions must be defined when drawing up the contract or on the invoice itself.
The payment term for transactions between professionals is generally 30 days, but it can be extended according to the agreement of the parties. A common practice is to apply the payment at the end of the month Following the receipt of the invoice.
If a Payment term end of month is agreed, this means that payment must be made no later than the end of the month following theIssuance of the invoice. For example, if an invoice is issued on February 10, the payment deadline will be March 31. It is important to clearly define this time frame in the contract to avoid ambiguity.
In some sectors, professionals negotiate longer payment terms. Businesses can agree on a Deadline of 45 days end of month Or of a payment on due date, especially in the context of large-scale contracts. These deadlines must be clearly stated in the invoice or contract.
For individuals, payment terms may be more flexible, but they must still respect the law and terms of payment specified by the professional. In principle, an individual is often required to pay the bill immediately or within a short period of time, depending on the terms agreed upon.
The standard time frame for 30 days does not generally apply in transactions between professionals and individuals, where a cash payment or payment upon receipt is more common. However, some professionals accept deferred payments or payments in installments according to the agreement made.
Payment options are diverse and can be adjusted according to the needs of the parties involved. Here are the most common types of payments.
This is an immediate payment, made during the receipt of the invoice or the delivery of the product. It is often required in transactions with individuals or for one-off services.
The payment upon receipt means that payment must be made as soon as the invoice is received. This option is common in contracts for the provision of services or in transactions between professionals.
The payment on time is an option where the parties agree to respect legal deadlines, such as 30 days or End of month, without further negotiation. This type of payment is often used in standard business relationships.
The payment with negotiated deadline allows the parties to define a longer payment term, according to the needs of each. This delay may be 45 days end of month, or other specific agreements. The payment with negotiated deadline must always be clearly stated in the contract or on the invoice.
The non-payment of bills in a timely manner can have significant consequences for businesses and their customers. These sanctions may be contractual or legal.
In case of late payment Or of unpaid bill, of late payment penalties can be applied. These penalties are generally set at a set interest rate (for example, 10% of the bill amount per month of delay). These penalties are legally authorized and should be clearly stated on the invoice.
If the bill remains unpaid after the due date, a Formal notice can be sent to the customer to remind him of his obligation to pay the bill. This recovery process is essential to initiate a procedure of Recovery.
If the formal notice does not produce results, the company may initiate proceedings for Judicial recovery. This procedure may include court fees and legal actions to get the bill paid. Businesses can also use specialized services for debt collection.
In the event of repeated non-payment, legal actions may be taken, such as keying of the debtor's assets or a legal action to get the debt back.
To avoid situations of unpaid bills recurring, it is important to implement effective debt management. This may include regularly updating the customer contact details, the sending of electronic invoices and the management of Invoice deadlines.
