Prompt Payment

According to the Prompt Payment Definition from Procurement NS, ‘prompt payment’ means paying invoices within 30 days of receipt. This helps businesses manage their cash flow and keep their operations running smoothly.

There are a few exceptions to this rule, such as if the goods or services have not been received or if there is a dispute about the invoice. In these cases, prompt payment still applies, but the payment may be delayed until the issue is resolved.

The Prompt Payment Definition also states that businesses must give their suppliers reasonable notice of any changes to their payment terms. This way, suppliers can plan ahead and avoid any disruptions to their own cash flow.