Purpose: TerraSmart’s policy to ensure that clients timely pay their invoices to ensure TerraSmart maintains optimal cash flow. It is vital for the Account Manager to be aware of the aging status of invoices to ensure TerraSmart is paid pursuant to the payment terms for each client. Additionally, deep knowledge of the account, their payment processing, and overall creditworthiness provide a reliable data point and reason to increase customer touches to increase overall development of a specific account.
Responsible Parties: Account Managers, Inside Sales, Accounting Department and General Counsel.
Invoice Collections Policy Terms:
- Accounting Department e-mails the client the invoice per the client’s payment terms. a. The Account Manager, inside sales support, and General Counsel are copied on all invoice communications to keep all necessary parties up-to-date on the status.
- One week prior to the invoice coming due, the accounting department sends another e-mail reminder to the client.
- 5 days past due, the Accounting Department sends another e-mail reminder AND the Account Manager follows up with a phone call.
- 10 days past due, General Counsel sends an e-mail requesting payment and indicating TerraSmart’s lien policy as stated herein.
- 14 days past due, General Counsel files a notice of contract , copy to the client, and interest charges will incur from the invoice due date. All fee’s associated with filing lien will be charged to the client.
- 30 days past due, General Counsel files a lien.
- 60 days after lien is executed foreclosure proceedings will begin on the property.
If invoices are not paid pursuant to the client’s payment terms, then the Account Manager’s commissions on that invoice will be affected as follows:
- If payment is not received within 35 days of the payment terms, then commission will be reduced by a half percent of the original commission rate.
- If payment is not received within 65 days of the payment terms, then the Account Manager’s commissions for that invoice will be voided.