Payment Terms: Different or the Same?
Thread poster: Hipyan Nopri

Hipyan Nopri  Identity Verified
Indonesia
Local time: 15:25
English to Indonesian
+ ...
Jan 24, 2007

Hello Fellow Translators,

In my invoice, I always state that payment should be made within 30 days after invoicing date. Thus, if I send an invoice on 1 January, the payment should be made on 1 February at the latest.

Now, I would like to know your comments regarding the following payment terms.

What do you think of the following payment terms? Are both the same or different?

1. Payment: at the end of the month following the invoicing month
2. Payment: 30 days after date of invoice

In my own interpretation, the second one is the same as my term, but the first one is quite different. With respect to the first term, if I send an invoice on 1 January, the payment will be made on 28/29 February.

Thank you very much for your comments.

Best Regards

Hipyan Nopri


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Fan Gao
Australia
Local time: 18:25
Member (2006)
English to Chinese
+ ...
Yes, I agree Jan 24, 2007

Hi Hipyan,

Yes, I agree with you. Usually it's worded as "following the month/date of invoice" but you are quite correct.

Is someone trying to say your payment terms mean the same as the first option?

Best wishes,
Mark


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Hipyan Nopri  Identity Verified
Indonesia
Local time: 15:25
English to Indonesian
+ ...
TOPIC STARTER
Not at all Jan 24, 2007

Hi Mark,

In fact, no potential client misinteprets my payment terms (Thanks God). I post this topic, however, based on my personal experience with different agencies. Some of them use the first term, and some others use the second term.


[Edited at 2007-01-24 13:58]


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Steffen Walter  Identity Verified
Germany
Local time: 10:25
Member (2002)
English to German
+ ...
Terms differ substantially Jan 24, 2007

Hi Hipyan,

These terms are not identical.

Taken to the extreme, your first term "payment at the end of the month following the invoicing month" could mean that you send the invoice on 2 February (February = invoicing month) but receive payment only on 31 March (March = month following the invoicing month).

Compared to "payment 30 days after date of invoice" (in my example, invoice sent on 2 February, payment due beginning of March), this would put you at a serious disadvantage in terms of cash flow.

Steffen

[Edited at 2007-01-24 13:45]


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Henrik Pipoyan  Identity Verified
Local time: 12:25
Member (2004)
English to Armenian
Hi Hipyan Jan 24, 2007

These terms are the same only once a month, the last day of the month. If you send the invoice on October 31, you’ll be paid on November 30. But if you send the invoice on October 1, you’ll still be paid on November 30, that is in 60 days instead of 30. If the client says it’s more convenient for their accounting to use the first method, you can come to a compromise. You agree to their terms but they pay by the end of the same month, instead of the following month. I use this method with some of my clients.

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Hipyan Nopri  Identity Verified
Indonesia
Local time: 15:25
English to Indonesian
+ ...
TOPIC STARTER
Thanks All Jan 25, 2007

for sharing your ideas. Indeed, the two terms are different. If a project is completed on the first days of a month, the second method is good. However, if the project is completed on the last days of the month, the first and the second methods are equally good.

Many thanks for your comments.


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Lubain Masum  Identity Verified
Bangladesh
Local time: 14:25
Member (2006)
English to Bengali
+ ...
Payment: ‘within 30 days from the issue date of invoice’ Jan 25, 2007

Hi

My opinion is a bit different regarding the payment term ‘30 days after date of invoice’.

Although I did not face any problem yet, but the term ‘30 days after date of invoice’ is ambiguous to me, particularly if the client has ill motive.

If you say 30 days after date of invoice, it can be any indefinite time after 30 days, but if you say that ‘within 30 days from the issue date of invoice’ or ‘on or before certain date’ , then I think it removes any confusion, and for new client I always prefer a definite date whether it is 10/15/30/45 days.


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