“Net 30” is a common payment term that gives your customer 30 calendar days from the invoice date to pay the bill. It’s popular in B2B transactions because it gives buyers time to manage their cash flow. But for sellers, it can be a bit of a balancing act. You want to offer flexibility without putting your own business at risk. That’s where clear communication, smart systems and a little bit of credit insight go a long way.
Getting paid on time can feel like a never-ending game of cat and mouse. You send the invoice, cross your fingers... and then wait. And wait. And then follow up. Again.
If you’ve been there, you’re not alone. That’s exactly why so many businesses turn to Net 30 accounts to keep things running smoothly. But what exactly are Net 30 terms and how do you set them up without turning your invoicing process into a full-time job?
Let’s break it down.
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Chapter 1
What are Net 30 Accounts?
Chapter 1
Step 1: Communicate your payment terms up front
It sounds obvious, but you’d be surprised how many businesses leave payment terms vague. If you want to use Net 30, it needs to be loud and clear right from the start.
In Contracts and Agreements: Make sure your service agreement or sales contract spells out that payment is due 30 days from the invoice date. Don’t just rely on verbal agreements or buried terms. Putting it in writing sets the expectation from day one.
On Invoices: Include the words “Net 30” in a visible spot and go one step further by stating the exact due date. For example, “Payment is due on or before May 30, 2025.”
When there’s no confusion, there’s less friction. And less friction means faster payments.
Chapter 1
Step 2: Invoice promptly and accurately
You can’t start the clock if you don’t send the invoice. The moment your product is delivered or your service is complete, send the invoice. The earlier it goes out, the sooner that 30-day countdown begins.
Also, make sure every invoice includes:
• Your business name and contact details
• A clear description of what was delivered
• The total amount due
• “Net 30” payment terms and due date
Even one small error can cause a payment delay, and those delays add up.
Chapter 1
Step 3: Offer incentives for early payment
Want to sweeten the deal? Consider offering a small discount for early payment. A common one is 2/10 Net 30, which means the customer gets a 2% discount if they pay within 10 days. This works especially well with companies that have strong cash flow and want to save money. And here’s the best part. It creates a win-win. They pay early, you get cash in hand faster. Of course, only offer this if your margins can support it. But even a small incentive can encourage prompt payments and reduce your need to chase invoices.
Chapter 1
Step 4: Apply late fees when necessary
Nobody likes to talk about penalties, but they’re important. If you let late payments slide with no consequence, you risk becoming an afterthought. It doesn’t have to be aggressive. Just clear. For example, include a statement like, “Late payments will incur a fee of 1.5% per month on the outstanding balance.” Make sure this is also included in your contracts and visible on every invoice. The goal isn’t to punish your customers but to encourage them to stay on schedule.
Chapter 1
Step 5: Check who you’re doing business with
Before you even extend Net 30 terms to a customer, you need to know if they’re reliable. That’s where Creditsafe’s business credit reports are game changers. Think about it. Would you lend someone money without knowing their credit score? Probably not. So why take that risk with your business?
With a Creditsafe report, you can instantly see:
• A company’s credit score and suggested credit limit
• Their average payment trends and how late they pay their invoices
• Derogatory legal filings like tax liens or bankruptcies
• The company’s group structure and ultimate beneficial ownership
• Commercial credit card and line of credit data on small businesses
These insights help you set the right terms from the start. Maybe Net 30 is perfect for a customer who always pays on time. Or maybe someone with a poor score should be on prepay terms instead.
Chapter 1
Step 6: Stay on top of outstanding payments
Even with clear terms and a good invoicing system, some payments will slip through the cracks. That’s why follow up is key. Start with a friendly reminder a few days before the due date. Then send another one the day after it passes. If there’s still no response, it’s time to call or escalate.
And again, Creditsafe’s tools can help here. With company monitoring, you’ll get alerts if a customer’s credit situation changes, like if they file for bankruptcy or their score drops. That allows you to act quickly, either by pausing further work or adjusting your terms. Staying informed helps you protect your cash flow and avoid nasty surprises.
Chapter 1
Step 7: Reassess terms as you go
Just because you start with Net 30 doesn’t mean it has to stay that way forever. If a customer is consistently late, it might be time to revisit those terms. Likewise, if someone always pays early, maybe you can negotiate better terms or offer larger orders.
Use the data in your invoicing platform and the insights from Creditsafe reports to guide these decisions. Don’t just go by gut feeling.
The more you understand your customers’ behavior and financial health, the more confidently you can manage risk. And the smoother your cash flow will be.
Chapter 1
Final thoughts
Net 30 terms can be a fantastic tool to build trust with your customers and give them a bit of breathing room. But without the right systems, it can leave you chasing payments and scrambling to make ends meet. The trick is setting expectations clearly, invoicing promptly, incentivizing early payment, and protecting yourself with good information.
That’s why pairing Net 30 terms with Creditsafe’s business credit reports is such a smart move. You get a clear picture of your customer’s financial health before offering terms and ongoing insight into how they’re handling their obligations.
Want to know who you’re really doing business with? Just enter a company name and get started with a free business credit report from Creditsafe.
About the Author
Steve Carpenter, Country Director, North America, Creditsafe
Steve Carpenter leads business operations, sales, P&L, product and data at Creditsafe. With 16 years of experience and a trusted track record of delivering strategic growth, Steve has become a recognized authority in global data acquisition and international expansion. His expertise, particularly in building partnerships and shaping product strategy, makes him a key voice in the business credit data space.