In supply chain contracts, payment must be made within how many days from the payment notice?

• A. 15 days
• B. 30 days
• C. 60 days
• D. 90 days

Answer: (B)

In supply chain contracts, payment timing is linked to the payment notice, which states the amount due and when payment should be made. The standard period after the payment notice is 30 days. This 30-day window creates a predictable, regular cash flow for suppliers while giving the payer a reasonable time to process the invoice, align it with monthly billing cycles, and arrange the funds. Shorter terms (like 15 days) can strain suppliers’ finances, while much longer terms (60 or 90 days) can leave suppliers waiting too long for money. Of course, if a contract specifies a different period, that term would apply, but 30 days is the common default.