Net terms invoicing
Deliver the work, send the bill, get paid in 30 days. The invoice is a promise, not a payment.
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What it is
Net terms means the invoice is due N days after it is issued: net 30, net 60, sometimes net 90 from a large buyer with leverage. Variants worth knowing: EOM terms count from the end of the month, and 2/10 net 30 offers a 2 percent discount for paying within 10 days. You are not collecting a payment, you are extending credit, which makes you a short-term lender to your own customer.
Reach for it when the buyer is a company rather than a person. Procurement and accounts payable do not hand over a card; they want a PDF invoice with a PO number, your legal entity and tax id, itemized lines, remit-to bank details, and an accepted payment method that is usually ACH or wire, not cards. Automate the chase: a reminder before the due date, one on it, then at 7, 14 and 30 days past due. Late fees are only collectable if the contract says so.
Gotcha: the clock often starts when AP accepts the invoice, not when you send it. A missing or wrong PO number gets the invoice quietly kicked back, and net 30 silently restarts. Net terms also break the SaaS habit of treating a signed deal as cash: revenue is recognized when delivered, cash arrives a quarter later, and the gap (days sales outstanding) is what actually funds payroll.
Ask AI for it
Build net-terms invoicing into our billing app. Add an invoice model with issue date, terms (due on receipt, net 15, net 30, net 60, EOM 30), computed due_date, PO number, itemized line items with quantity and unit price in minor units, tax lines, subtotal and total, plus status (draft, sent, viewed, partially_paid, paid, overdue, void). Generate a branded PDF that includes our legal entity, tax id, remit-to ACH and wire details, the customer's PO number and an early payment discount line when 2/10 net 30 applies. Send automated reminders 3 days before due, on the due date, and at 7, 14 and 30 days past due. Support partial payments and credit notes rather than editing a sent invoice, and expose an aging report bucketed 0-30, 31-60, 61-90 and 90+ days with days sales outstanding.