Net terms
Net terms are the number of days a customer has to pay an invoice after it is issued, such as net 30, common with commercial and HOA customers.
Also called
- net 30
- net 15
- payment terms
- due terms
Homeowners usually pay on completion. Property managers, HOAs and businesses usually pay on terms, because invoices go through approval, often with a purchase order number. Net 30 means payment is due 30 days after the invoice date.
Set terms per kind of customer, put the due date on every invoice, and follow up the day after it passes. Terms affect cash flow: a month of commercial work on net 30 is money you have paid out for wages before it comes in.
Formula
due date = invoice date + net days
Track it in Birdy
Leads, quotes, jobs and invoices on one customer record, set up with your own data.
Related
- FeatureInvoicingInvoices drafted when a job is done, batch billing for HOAs, and reminders for late ones.Read
- GlossaryAccounts receivableAccounts receivable is the money customers owe you for work already invoiced but not yet paid.Read
- GlossaryHOA (homeowners association)An HOA is the association that runs a neighborhood's shared areas and rules, and a common commercial customer for cleaning entrances, sidewalks and pools.Read
- GlossaryCommercial vs residentialResidential work is for homeowners; commercial work is for businesses, property managers and HOAs, with different prices, scheduling, paperwork and payment terms.Read