How long does it take from an invoice to pay a company?
Well i have sent out an invoice to a company today - they are already advertising with us - how long does it take for them to pay us? normally...? the accountant is away so i can't ask him :)
Other - Business & Finance - 5 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
It depends on what payments terms your company has agreed with the other company.It could be 30 days to 90 days
Answer 2 :
There is no normal in these situations. It should say on the invoice how long the company have to pay. A lot of the time it would be thirty days. But there is no guarantee that they will pay in this timeframe. Indeed, if the company is in financial trouble there is no guarantee that they would pay at all. If they have used your services before, you could check how long they took to pay on previous invoices.
Answer 3 :
Typically 3-4 times longer that your terms & conditions (if you state 30 days, expect to wait 90-120).
Answer 4 :
Invoicing can typically be anything from "Payment Upon Receipt" to 120 days. Most invoices are dated 14 days or 30 days. Pull a few invoices from the files to see what the terms were either for that customer or others. Date this invoice the same.
Answer 5 :
It depends on what the payment terms are for that company. A lot of businesses pay on a 30 day term, so you wouldn't get paid for 30 days. Some businesses have a 30 days net term which means 30 days from the end of the month in which you invoice them - so if you invoiced on 26/10/09 you wouldn't get paid until the end of november, but if you invoiced them on 02/10/09 you still wouldn't get paid until the end of november. Some are 60 days or even 90 days. Other companies pay invoices on receipt or within a set period such as 10 days. So the answer is that no-one knows when you will get paid. In future, check payment terms beforehand.
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