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Is PACAs prompt pay provision preferable over a separate extended payment agreement?

April 26, 2017Agreement extended paca pay payment preferable prompt separate

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Is PACAs prompt pay provision preferable over a separate extended payment agreement?

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Meuers Law Firm, P.L. recommends all produce sellers use the PACA regulations’ prompt payment terms. The PACA prompt payment regulations are preferable because they require quick payment by customers. Additionally, written payment agreements may cause sellers to lose their rights as a PACA trust beneficiary. PACA trust rights may be lost if an invoice reflects a payment term different than the written agreements. PACA prompt pay provisions also greatly reduce the amount of paperwork necessary to comply with PACA trust rights and thereby improve a seller’s chances of recovery on an outstanding account balance.