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What does net 30 mean? You may see net 30 written as “net30 days.” In this case, “net” refers to the total amount due after all discounts, and the number (represented by net-D) is the total number of days the client has to pay after services are performed or goods are delivered. Here’s more basic info you should know about net 30 terms and other invoice terms related to net 30 payment terms.
What is net 30 and why is it important?
net30
In invoice terms, it is the time required for invoice payment. You’ll probably find that net 30 invoicing is the most common, but some industries even have a net of 60 or 90 days.
You might not want to tell a client that you can’t wait 60 or 90 days to get paid, especially if you’re just starting. Not everyone can afford to say no to money. You don’t want customers thinking that you’re so small that you can’t keep your operations open for that long without payment.
How to obtain faster payments in net terms?
A common reward for faster payments or net 30 days is to offer a discount when the invoice is paid in full by a specific date before the final due date. This is where terms like “3% 10 Net 30” or “3/10 Net 30” come in.
For more net 30 definitions and info, contact Triumph Business Capital today!
Here's my website: https://www.invoicefactoring.com/factoring-blog/a-factoring-companys-guide-to-net-30-and-invoice-payment-terms/
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