The University of Michigan is streamlining the supplier payment process and expanding opportunities for suppliers to receive payment faster.
Beginning November 17th, 2026, suppliers will see updated payment term options including:
- Net Zero – Payment is made immediately upon invoice approval when enrolled in the Card Program (virtual card payment option)
- Net 45 – The University’s standard payment term for invoices paid by Check, ACH, or Wire transfer.
Faster payment through Card Program (virtual card payments)
Suppliers who choose to participate in the University’s virtual card payments programs can take advantage of expedited payment terms. The University offers two virtual card payments programs:
Upcoming Change to Standard Supplier Payment Terms
Beginning November 17, 2026, the University of Michigan will begin a phased transition of its standard supplier payment terms from Net 30 to Net 45. Under Net 45 terms, payment is generally due 45 days after the invoice date, subject to applicable contractual terms.
This change supports the University’s efforts to modernize payment practices, reduce reliance on paper checks, and promote faster, more secure electronic payments, while aligning with practices at peer universities.
What departments need to know:
- Phased implementation: The November 17 change applies to new and reactivated suppliers. Existing active suppliers are not automatically transitioning to Net 45 at this time.
- Contractual payment terms: Where an existing supplier contract specifies different payment terms, those contractual terms will continue to apply.
- Accelerated payment options: As part of the University’s efforts to expand secure electronic payments, suppliers are encouraged to explore accelerated payment options through our virtual payment programs.
No immediate action is required from departments. Procurement Services, in partnership with SSC and ITS, will manage the transition and work directly with suppliers regarding payment terms and available payment options.
For more information, please refer to the Supplier Payment Methods and Terms Knowledge Base Article or contact Procurement Services with questions.