1. What is Net 30?

"Net 30" is a common payment term in business that means payment is due 30 days after the invoice date. It's one of the most standard credit terms used in commercial transactions between businesses.

2. How Does the Calculator Work?

The calculator uses a simple formula:

The calculation accounts for:

• Calendar days (not business days)
• Month-end transitions
• Leap years when applicable

3. Importance of Payment Terms

Details: Clear payment terms help businesses manage cash flow, avoid late payments, and maintain good vendor relationships. Net 30 terms are standard but can be negotiated based on business needs.

4. Using the Calculator

Tips: Simply enter the invoice date and the calculator will show the exact due date 30 days later. This helps with payment scheduling and financial planning.

5. Frequently Asked Questions (FAQ)

Q1: Does Net 30 include weekends and holidays?
A: Yes, Net 30 typically counts calendar days, not just business days. Some contracts may specify "30 business days" if that's the agreement.

Q2: What if the due date falls on a weekend or holiday?
A: Unless specified otherwise in the contract, payment is still due on that date. Some businesses may extend to the next business day as a courtesy.

Q3: Are there variations of Net 30 terms?
A: Yes, common variations include Net 15, Net 45, and Net 60. Some terms include discounts for early payment (e.g., 2/10 Net 30).

Q4: When does the 30-day clock start?
A: Typically from the invoice date, not the date goods/services were delivered. Always check the specific terms.

Q5: How can I encourage faster payments?
A: Consider offering early payment discounts (e.g., 2% discount if paid within 10 days) or implementing late fees.