The payment policy template is used to make set of rules or directions helps the customer in making the bill payment. The main purpose of setting these guidelines is to avoid any issue between the customer and the seller. To make complete clarity in the minds of the customer, the payment policy is framed.
How to make a payment policy?
Let us discuss step-by-step how to make a payment policy;
- Google Docs or the MS Word is the best tools for the preparation of the payment policy. They allow you to make all required settings like measurement of the page, margins, font style, font size, etc.
- A single person can’t formulate a policy. To come up with a perfect policy, it needs meetings and discussions. You must arrange a meeting in which you brainstorm ideas and reach to a conclusion that will be your final policy.
- When discussion is over and you have ultimate points, prepare the policy. You should provide essential points that have discussed the structure of the required policy.
- When you have all done with the above steps, review it to avoid any type of mistake and error. Make sure that your policy is well-organized and well-constructed.
Parts of a payment policy:
The time limit to create a payment:
It refers to last date of making payment with the charges. After last date, it will be incurred on late payments. You should state it clearly to make sure that you inform the buyer he has a deadline.
The form of payment:
This part involves the list of all the payment methods that you receive and don’t receive. Each buyer use different types of methods. So, you should specify your buyer that what payment method he can use to make the payment.
The site for making payment:
The information of the location or the site or the option where the customer can make a payment is included in this part. You can also include your payment details here. You may also like Purchase Order Templates.
Handling the early and the late payment in as per your payment policy:
To fasten the payment process, you can make use of some kinds of discounts. You can say that you can give incentives to the customers who will pay before the last date. This makes sure that you receive all your payments on time or even early.
Due to the late payments, the process of the payment becomes slow. So, to avoid the late payment, fix some charges that will make your customer to pay on time. To compensate for the late payment and the loss in your business, you can also add some amount of interest to the payable amount.
Payment terms refer to the set of conditions that bound the seller to complete the all over the sales process. The buyer has to make the payment under these conditions. All these conditions should be mentioned in the policy. It is also important that every payment policy must contain the payment terms in order to make clarity between the buyer and the seller.
In conclusion, online payment policy templates are useful documents that provide you the complete image of the payment policy. This document contains a set of instructions that guide a customer to make the bill payment.