There is no universal rule although as a matter of practice your terms and conditions will contain certain clauses.
It is common for them to address some of the following issues.
- When payment should be made
- Interest due on outstanding accounts
- Payment terms: It is not unusual for credit between 30 to 90 days to be given. This will depend upon the custom and practice of your trade. Alternatively you may insist upon cash by order or when delivery is made. The decisions you will make will depend upon the credit risk and different trading factors
- Interest - You may wish to insert a provision in your terms and conditions to the effect that if payment of the price is not made within a certain period of time you are able to charge interest to your customer at a certain rate. This topic has been much dominated by the later payment of interest legislation. Remember - if you wish to rely upon your own terms and conditions with regards to interest these must be included in your contractual terms and held to be binding. (Click here to view further information on late payment of interest)