Payment terms

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The line on a bid that says when and how the customer pays: the deposit, any progress payments, and the balance.

Payment terms are the one line a customer reads twice. "50 percent at signing, balance on completion." "Due on completion." "10 percent deposit, 40 percent at start, 50 percent at completion." Whatever the shape, it is on the bid before the customer accepts it, so paying is never a surprise.

Terms should match the job: materials bought up front want a deposit, long jobs want progress payments, a one-day repair is paid when it is done. The terms line is also where the method goes: card, check, cash, or an app.

Related: Deposit · Progress payment · Net 30 · Due on completion

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