Customer Payment Terms – Cash vs Credit Policy

Clear payment terms reduce disputes and improve cash flow.

Common Terms

• Cash – Pay on delivery
• Credit 7/15/30 – Days to pay after invoice
• Half advance – Common for large orders
• Against delivery – Pay when goods received

Set Your Policy

• New customers: shorter credit or advance
• Regulars: extend based on track record
• Credit limits per customer
• Interest on overdue: state clearly

Document

Write terms on invoice or khata. Udhar management. Stockkeeper tracks who owes what. [Join the waitlist](/ “#waitlist).