2018-02-13 00:00:00InvoicingEnglishWhat does "net 30" mean on an invoice, and what should a small business owner do if a customer is late paying the invoice?https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2018/03/Accountant-Ready-Explain-Net-Listener.jpghttps://quickbooks.intuit.com/ca/resources/invoicing/net-30-definition-explanation/What Is Net 30?

What Is Net 30?

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Net 30 refers to the terms of payment for a good sold or service rendered. With net 30, the purchaser has 30 days from the date of the transaction to pay in full before the account is considered past due. Sellers may also offer a discount in exchange for quicker payment. For example, if a seller offers a 2% discount for full payment within 15 days, the invoice terms would read “2/15 net 30”. The use of net 30 or net 15 for small businesses is most common.

A grace period of a few business days is not unusual if payment is not received by the due date. An email or phone call to the client with a reminder about the payment is a common next step. Charging interest or initiating the collections process may be necessary if the account remains delinquent.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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