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Overview

This document outlines our policy and processes for offering payment terms and billing frequency on customer agreements.

Scope

This policy applies to all new, renewal, and amendment opportunities for the sales-assist motion. This includes:

• Payment provider = Purchase Order
• Payment provider = AWS

Resellers

Payment terms for resellers are based on partner agreements. Payment terms for resellers are net 30, unless different terms were negotiated in their partner agreement with us. Exceptions for resellers may be granted under this process for specific deals.

Standard Terms

Our standard payment terms and billing frequency are Net 30 Annual and are pre-approved for all deals regardless of the amount. All other payment terms will require finance approval.

Net 30 annual terms will allow for the fastest processing of deals as these terms are pre-approved.

Exceptions

Finance approval is required for any terms other than net 30 annual. Documents cannot be sent for signature until all approvals are completed.

• Net 45 or net 60 must be approved by Finance and is considered only for accounts with more than $20K USD in ARR.
• Billing frequency other than Annual (e.g. Semiannual) is considered only for accounts with more than $20K USD in ARR. We do not offer monthly payment terms for PO or AWS deals.
• All other custom payment terms not mentioned must be approved by Finance.

Meeting the ARR threshold does not guarantee approval.
It only ensures the request will be considered for review based on the following factors:

• Customer financial profile
• Historical payment record
• Circumstances and context of the request
• Other relevant criteria determined by Finance

Requesting Approval for Exceptions

• Approval will be triggered by Ironclad CLM automatically when required. A task no longer needs to be created in Salesforce and a message does not need to be sent in the #creditchecks slack channel.
• Approval will occur in Ironclad CLM. Approvals will not be given in slack or other systems.
• Any relevant additional details for the exception request can be added in the activity feed in the Ironclad CLM workflow.
• Discussion regarding the request will also occur in the activity feed in the Ironclad CLM workflow.

 

More information on how approvals work in Ironclad CLM can be found here: Approvals in Ironclad

Payment Method	Payment Terms	Billing Frequency	Approval	Explanation
Purchase Order	Net 30	Annual (for deals > 1 Year)/Upfront	Pre-approved in all cases.	This is our standard payment terms. Customer must pay the total invoice amount 30 days from the invoice date.
Purchase Order	Net 45	Annual (for deals > 1 Year)/Upfront	Finance approval required for net 45 terms. ARR must be over $20,000 USD in order for net 45 to be considered for approval.	Customer must pay the total invoice amount 45 days from the invoice date.
Purchase Order	Net 60	Annual (for deals > 1 Year)/Upfront	Finance approval required for net 60 terms. ARR must be over $20,000 USD in order for net 60 to be considered for approval.	Customer must pay the total invoice amount 60 days from the invoice date.
Purchase Order	Due on Receipt	Annual (for deals > 1 Year)/Upfront	No finance approval required.	Reserved for customers with bad credit. The customer must pay the same day they receive the invoice otherwise their account can be frozen in BO until they pay.
Purchase Order	Any of the above	Semiannual, Quarterly	Finance approval required. ARR must be over $20,000 USD in order for these billing frequencies to be considered for approval.
Stripe Purchase Order	Monthly			Reserved for Stripe and Stripe PO deals where the customer pays the full bill in monthly increments.
Stripe Purchase Order	Upfront			Reserved for Stripe and Stripe PO deals where the customer pays the full bill immediately when the card is charged.