Understanding Net 30: Why It’s More Than Just a Payment Deadline
Net 30 payment terms are a popular invoicing method where clients have 30 days to pay after receiving an invoice. While they can help attract larger clients by offering flexible payment options, they also pose cash flow risks for small businesses. The key is to balance your business’s financial health with client needs—setting clear terms, vetting clients wisely, and using tools to track receivables effectively. Understanding when and how to use Net 30 terms can make or break your financial stability.