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Getting paid

Net 30 (Payment Terms)

The short answer

Net 30 means payment is due 30 days after the invoice date. Net 14 and Net 7 work the same way with shorter windows. Pick one standard and use it on every invoice.

What it means

The number after “net” counts days from the invoice date. It does not count from the job’s completion date. So it matters when the invoice actually goes out. Send it the day the job finishes, and “Net 30” means the money is due in a month. Hold the invoice for two weeks first, and you have given the client 44 days without meaning to.

Shorter terms such as Net 7 or Net 14 get you paid faster. They suit most small jobs, especially if cash flow is tight. Net 30 tends to show up with bigger commercial clients. Their own accounts-payable process runs on a monthly cycle. You can ask for shorter terms, but some clients will say their process cannot move that fast.

For example

You send an invoice on July 1st marked Net 14. Payment is due July 15th, whether the client remembers or not. The due date is printed on the page, so neither of you has to calculate it later.

The mistake to avoid

Writing “due upon receipt” instead of a real Net-X term. It sounds firm, but it gives the client no concrete date to be late against. You then have no clear day to start your reminders from.

See also

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