Template
Net-Terms Agreement Checklist
Before the first Net 30 order ships, two things should be true: you've done a few checks on the buyer, and the terms exist in writing. This checklist covers both — seven pre-flight checks, then the thirteen points a written agreement should state. Free, editable, no email wall.
Download the checklist (Word, .docx)
The full checklist is also below — print this page or copy it into your notes.
Part A — Before you grant terms
- Credit application received and complete — no blank reference fields. (Need one? Free template here.)
- At least one trade reference phoned. One five-minute call: how long have they supplied them, do they pay on time, what limit do they give?
- Credit limit set and written down. A sane start: about 2× their expected monthly order value.
- Terms decided. Net 30 unless there's a specific reason for longer.
- First-order policy applied. First one or two orders paid up front while references are checked.
- AP contact and invoice inbox confirmed. You know exactly who pays and where invoices must land.
- PO requirement confirmed. If they need PO numbers, your invoices carry them from day one.
Part B — What the written agreement covers
Thirteen points. Most are one sentence each in the final document:
- Legal names of both businesses.
- The terms: Net 30 (or whatever you agreed), counted from the invoice date — say it explicitly, or buyers will count from delivery, month-end, or whenever suits them.
- How invoices are delivered, and to which inbox or portal.
- PO number requirement, if any.
- The credit limit — and that you may adjust it.
- What happens past due: reminder emails, and new orders pause at 30 days overdue. Writing this down is what lets you enforce it later without it feeling personal.
- A late-payment interest clause — even if you never charge it. Buyers pay the invoices that cost money to ignore first. Check what your local rules allow.
- A dispute window: invoice problems must be reported within 7 days — not discovered on day 29 when payment is due.
- Accepted payment methods.
- How returns and credit notes are handled.
- Personal guarantee — optional; a decision point for larger limits.
- Governing law (your country or state).
- Signatures — or, at minimum, a clear email where the buyer replies "Agreed."
Does it have to be a formal contract?
No. A one-page document both sides sign is the gold standard, and worth a professional's read once real money is at stake. But the enemy here isn't informality — it's nothing in writing. A short email listing the terms, answered with "Agreed," settles ninety percent of the arguments that otherwise happen at day 45: when the clock started, where the invoice should have gone, and what happens now. This checklist is a starting point, not legal advice — adapt it to your country and your business.
When a short email is genuinely enough
One or two buyers, modest orders? Don't draft a treaty. Send the five lines that matter — terms, limit, invoice inbox, PO requirement, what happens past due — and get the "Agreed" reply. That's a written agreement. Upgrade to the signed version when the numbers grow.
Common follow-up questions
Is an email agreement really enough?
A signed one-page agreement is better, and for larger exposures you should have a professional read your final version. But a clear email the buyer replies “Agreed” to beats a verbal deal every time — the point is that the terms exist in writing before the first order ships.
Should I actually charge late-payment interest?
Having the clause and charging it are separate decisions. The clause changes behavior — buyers prioritize invoices that cost money to ignore. Many merchants never invoice a cent of interest; the option is the deterrent. Check what your local rules allow.
What if the buyer won’t sign anything?
Offer the email version: a short message listing the terms, ending with “reply Agreed and we’ll ship.” A buyer who resists every written form of the deal is telling you how disputes will go later — keep them on pay-up-front orders.
Do I need all this for a single trusted buyer?
You need less: the terms, the limit, and what happens past due — in one short email. The full checklist earns its keep as the buyer list grows and memory stops being a reliable filing system.
If chasing invoices is the part you dread: TermsPilot sits on top of the native setup this guide covers — one aging dashboard, reminder emails that keep going until the invoice is paid, and per-company credit limits. The Free plan shows you who owes you what before you pay us anything.