Question 1

What does "Net 30" actually mean?

Accepted Answer

Net 30 means payment is due 30 calendar days after the invoice issue date. Not 30 business days. Not 30 days after the work was completed. Not 30 days after the customer received the invoice. The clock starts on the date printed on the invoice. State the issue date prominently so there's no confusion about when the 30-day window started.

Question 2

Net 30 vs Net 30 EOM — what's the difference?

Accepted Answer

"Net 30" = 30 days from issue. "Net 30 EOM" (end of month) = due 30 days after the end of the month in which the invoice was issued. So an invoice issued April 5 with Net 30 EOM is due May 30 (30 days after April 30, the end of issue month). EOM terms are common with enterprise customers running month-end AP cycles. State explicitly which you mean.

Question 3

What's typical for B2B vs B2C?

Accepted Answer

B2B: Net 30 is the dominant default; some larger enterprise customers stretch to Net 45 or Net 60 (you have to absorb the cash-flow gap). B2C: due on receipt or Net 15 is typical; consumer trust in the work is shorter than business trust. For new clients of any kind, shorter terms are appropriate; lengthen as the relationship proves out.

Question 4

Should I offer early-payment discounts?

Accepted Answer

Common pattern: "2/10 Net 30" — 2% discount if paid within 10 days; otherwise full balance due in 30. Effective annualized return is roughly 36%, so the customer's CFO will usually take the discount. Works well for B2B where payment timing is a deliberate decision; less applicable to B2C (where customers either pay or don't, but rarely time their payment for a discount).

Question 5

What payment term should I default to?

Accepted Answer

Net 30 is the safe default for B2B services. Net 15 is appropriate for first-time customers, freelancers building cash-flow stability, or smaller-dollar invoices. Net 45 or Net 60 should be reserved for enterprise customers with documented payment cycles. Due on receipt makes sense for one-off retail-like transactions and high-trust repeat clients.

Question 6

When should I require payment upfront?

Accepted Answer

Three cases: (1) new client over $1K with no track record, (2) custom work where you'd lose substantial money if the customer walks, (3) work where materials/upfront costs are significant. Standard pattern: 25-50% deposit at signing, balance Net 30 on completion. State both due dates explicitly on each invoice.

Question 7

Can I change payment terms mid-relationship?

Accepted Answer

Yes, with notice. Industry-standard: 30-90 days written notice for tightening ("Effective July 1, payment terms move from Net 60 to Net 30"). Loosening ("We're extending you to Net 60") doesn't require notice — that's a courtesy. State the change explicitly on the first invoice issued under new terms; the customer's AP needs to update their records.

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