What are payment terms?
Payment terms: When a bill must be paid, for example "30 days after the invoice" or "half before, half after".
Example
Rosa's conference client pays 45 days after the event, while she pays $4,050 for food a week before it. Asking for a deposit, half before and half after, would bring cash in before the costs go out.
Made-up people and numbers from the cases of our course; the math is real.
A common mistake
Agreeing to long payment terms without checking the weeks in between: the costs are paid first.
Try it with your own numbers: Cash runway calculator (free, no sign-up).
Practise this in block 1
Block 1 of Ownwise is free, with no account needed to start: short lessons on costs, margin and break-even, then a made-up case where you make the decisions. This term has its own lessons in block 3, part of the paid practice pack.