Net payment terms on have been around forever, but they’re still difficult to deal with. One of the reasons payment terms were so long in the first place (60, sometimes 90 days) was because you had to physically mail payments back before everyone used email.
Now that it is not absolutely necessary to snail mail an invoice, wait for approval, and hopefully get a check mailed back, there is no reason to offer such long terms. The only remaining reason would be the industry standard. Many companies (across all industries) report that having shorter terms results in a higher percentage of companies paying on time. There is a wider availability of online payment options through all the available options of accounting and invoice software most with options to process payments online.
In the long struggle against the curse of delinquent payments, trying a new tactic to reflect the reliance on faster technology could really help your business. Like anything, testing out a new tactic with your accounts receivable department can be confusing at first but in the long run may promote healthier cash flow for your business.
Learn more about Armatic's electronic invoicing and online payment systems.