It’s the difference between a business’ inflows and outflows, especially important for establishing liquidity. Liquidity ensures a company’s financial stability and timely settlement of obligations. Lack of financial liquidity can be grounds for declaring financial bankruptcy.
Unless the contract states otherwise, due date is determined by the supplier. In accordance with the Act of 19th July 2019, maximum payment terms of an invoice issued to another business is 60 days, and to a public body, 30 days.
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If a customer fails to meet the due date, they can be issued a reminder or collection letter. Missing the final deadline may result in additional late payment interest rates.
