Great attorneys solve problems
Your attorney should be your trusted advisor and problem solver. We pride ourselves on providing clear and realistic advice and setting realistic expectations. Every problem has a solution and it is our goal to help you find it in the most efficient and cost effective way possible.
The Law Office of Rocco E. Cozza is a law firm located in suburbs of Pittsburgh, serving all of Pittsburgh, Allegheny, Washington, Butler, Westmoreland and Lawrence counties.
The firm's practice areas include business law, employment law, real estate law, intellectual property law, litigation and asset protection.
The Law Office of Rocco E. Cozza clients include small businesses, employers, employees, property owners and investors, parties in litigation, and individuals with a wide variety of legal needs.
Important Contract Provisions – Payment Terms
At the outset of your relationship with the customer, you need to establish clear payment policies outlining how and when payment is to be made within your agreements. This provision will clear up any misunderstandings between you and the customer. If you are not getting cash up front, all your agreements and invoices should clearly state when payment is due and what happens if the customer pays late.
For example, you should have a clear payment term, be it 15, 30 or 45 days. Second, you want to define the days as calendar days. Third, you want to ensure there are penalties for nonpayment within the timeframe, such as interest penalties, payment of collection cost and attorney fees, etc. Your provision must have teeth.
Lastly, you can offer early payment discounts to incentivize your customers to pay ahead of schedule. This works quite well in many industries. All in all, your payment provision should be clear, concise and strong. If you don’t have this in your agreements, call our office today.