What do they mean? What do we offer?
As a small business with aspirations of growing into a big one, we often try our best to offer our customers what we believe is the next big thing or stepping point in our industry. We know that the HVAC service and Refrigeration service industry is complicated, tough, and highly necessary for your business’s success. That necessity is what drives us to offer more for those who stick with us long term. So, the following is our way for a Refrigeration business based out of Portland, OR can help clear the water!
Payment Terms: Huh?
It seems simple but often gets confusing. Below is a graphic from InvoiceBerry (a decent source for all things related to invoices) that helps illustrate the different payment terms out there.
2/7 NET 30
- The customer gets a 2% discount for payment made within 7 days. If not within 7 days, the payment should be made in full within 30 days.
- The customer has 30 days to pay from the date of the invoice, interest and penalty-free. A standard credit extension.
What do we offer?
Customers of North Pacific Mechanical start as same-day payment customers. Often enough we’ll operate as NET 1 for new customers.
Non-PM agreement/New customers
- Same-day and or NET 1 terms apply
As the relationship builds and you become a preventative maintenance customer the following occurs:
First year/First PM agreement
- 1/7 NET 30
Second year/Second PM agreement (renewal stage)
- 2/7 NET 30
A 1% discount for paying early in your first year and a 2% discount for paying early for every year after that.
*Please note: all images meet and follow the Creative Commons 3 – CC BY-SA 3.0
** Featured image obtained from: http://www.thebluediamondgallery.com/handwriting/p/payment-terms.html