I'm just curious what everyone else is doing for their Net terms on invoices due?

When I first started out I was Net 7 but that was a bit stressful for some of my clients, especially as my rate increased along with the work load - it can be a LOT to ask a client to pay a four or five figure invoice on such a short time frame.

I'm not on Net 14 but considering going to Net 30 for the same reasons mentioned above - would love to know what works for everyone else, and why you set it up the way you did.

Thanks!

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It depends on my clients. I have one client, the accounting department, is set up for Net 30, so I didn't have a choice. My small clients I use net 15(makes sense to me more then Net 14, for some strange reason) so they dont freak out as bad when I first started and now I have my new clients that are on a net 7 because after thinking about it 2 weeks just seems too long to wait for some to pay. I like having different, because to me it seems like there is always money coming in...makes me feel more stable, I guess. Then I have the few retainers that are due on the first of the month and I have a 3 day grace on that, why? Dunno, just seemed nice.

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Rebecca Thompson
CLR Virtual Connection * fanTABulous fan pages

Hi Tess:

I have my contracts at Net 30. So far, it seems to work out well for everyone. I do invoice on the 1st and 15th of each month.

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Delilah Smith
Caliber Virtual Services

I've never indicated n30. I ask for payment on receipt of invoice. But when it is a large invoice, or if I know one of my clients are struggling, I tell them personally on the phone that I can take a couple of payments on this....but I never let them push off a payment 30 days.

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Cheryl O'Neil
Southern Orange County

I do net 15 as well but I do have one client that I give leeway too since one partner approves and codes everything and the other partner pays and I know I always get the payment.

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Lee Drozak
My Office Assistant

I'm with Delilah. I do Net 30 but send out invoices on the 15th and 30th.

I have two clients that are different. One is a project job so they get a "due upon receipt" invoice. The other is a small neighborhood association. I prepare their membership statements every quarter and then make their deposits. So, they get invoiced every 3 months which works out just fine. It's never a large amount so it doesn't impact my income too much by invoicing them quarterly.

Whatever you decide I think you should stick with it. There will be exceptions. My new client will be Net 15 for a while until we are comfortable with one another and I know he's a good payer. Then I may switch to Net 30.

Carol
CJ's Virtual Business Solutions

My terms are Due at Receipt of invoice, unless they ask otherwise. I think Net 10 is appropriate. The two company's I worked for were both on Net 10 Days.

Currently I am sub-contracting and the norm for me is Net10 when I am sending the invoice over, as well as the VA I am working with, she sets this limit to all of the clients but if the clients are in a bind then she will modify the terms, it seems that if you are more flexible it is better but it also depends on the project.

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Kristin Kuzik
www.virtualwebconcepts.com

Great question Tess!

I use 2% 10 Net 30 for most of my clients; however I have one client who prefers to pay me for each project/task. Makes for a lot of invoices, but he pays them immediately so it works for me!

I use the 2% 10 Net 30 as an incentive to pay early and obtain a discount, at 31 days past due invoices are assessed a late fee equal to 1% of the total amount due on that invoice. So far, I've only had 1 invoice go over 30 days.

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Need Help? Ask Viki!

I do a net 15 and bill on the 16th and the 1st for the majority of my clients. I work w/2 non-profits and bill them quarterly as donations are not coming in well right now.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"