Structure it as a discount instead of a penalty, but have the fully discounted rate be the figure you wanted in the first place.
Helps in initial negotiations if they want long net terms. You can just say, "sure...here's the rate for NET 45".
And, helps with slow payers.
So, in month 2, if they have paid on time for month 1, present an invoice with the discount applied. If they are late, then don't apply it.
Structure it as a discount instead of a penalty, but have the fully discounted rate be the figure you wanted in the first place.
Helps in initial negotiations if they want long net terms. You can just say, "sure...here's the rate for NET 45".
And, helps with slow payers.
So, in month 2, if they have paid on time for month 1, present an invoice with the discount applied. If they are late, then don't apply it.