Payment Discount Terms Sample Clauses
The Payment Discount Terms clause defines the conditions under which a buyer can receive a reduction in the total amount owed if payment is made within a specified, often shorter, timeframe. Typically, this clause outlines the percentage of discount available and the exact period during which the discount applies, such as a 2% reduction if paid within 10 days of invoice. Its core practical function is to incentivize prompt payment by buyers, thereby improving the seller’s cash flow and reducing the risk of late payments.
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Payment Discount Terms. The Payment Discount Terms for this Agreement are as follows: [ ] %/[ ]Days, Net [ ]. The Payment Discount period begins upon date of completion of delivery of the goods and/or services on a Purchase Order for which payment is sought, or upon date of receipt of properly prepared invoices covering such items, whichever is later. Payment is deemed to be made, for the purpose of earning the discount, on the date on which City has issued a check to Contractor or, if Contractor has agreed to electronic payment, the date on which City has posted electronic payment to Contractor.
Payment Discount Terms. No additional charge shall accrue against City in the event City does not make payment within any time specified by Contractor.
Payment Discount Terms. Not Applicable.