So I want to make payment terms net 7 in order to get invoices paid more quickly. Am I able to do that or must it be 30 days since it's a commercial item that's not food or fuel? Thank You.
I'm unaware of any restrictions on using less than 30 days on the SF 1449 (I assume no discount terms are being offered for early payment). The Prompt Payment Act established 30 days as a ceiling to protect the interests of contractors and encourage them to do business with the Government. FAR Part 12 encourages the Government to use commercial practices, so if it's commercial practice in the hotel industry to be paid within seven days of invoicing, then that's the appropriate payment period to use. Check your agency supplement to be sure there are no additional restrictions, as FAR 53.212 permits agencies to prescribe their own procedures on use of the form.
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