Payment terms (betalingsbetingelser)
Also known as credit terms, credit period, net 8, net 30, terms of trade, betalingsbetingelser, kredittid, kreditperiode, netto 8, netto 30, handelsbetingelser
Your payment terms are the conditions you sell on — including how much credit the customer gets, and what late payment costs.
In practice
Payment terms are the cheapest lever you have on your liquidity. Move from net 30 to net 14 on new customers, and you move the entire receivables ledger 16 days closer to the bank account — without recovering a single krone.
But terms only work if they have been agreed. They must appear in the contract or in terms of trade the customer has accepted — not turn up for the first time at the bottom of the invoice. An interest rate printed on an invoice whose terms the customer never approved has not been agreed.
Between businesses, you may agree a higher rate of interest than the statutory one. It is the most overlooked line in a set of terms of trade.
Where it commonly goes wrong
- The terms appear only on the invoice. They must be agreed in advance to be enforceable.
- Terms are tightened without any chasing. Net 8 does not help if the first reminder is only sent after 45 days. It is the consequence, not the number, that moves DSO.