Net 30 invoices: how to get B2B invoices paid on time

The usual terms

• Due on receipt: payment is expected as soon as the invoice arrives.
• Net 15, Net 30, Net 45, Net 60: payment is due that many days after the invoice date.
• 2/10 Net 30: the customer can take 2% off if it pays within 10 days; otherwise the full amount is due in 30.

Why invoices get paid late

• The invoice doesn't have the customer's PO number, so accounts payable can't approve it.
• It went to the person who placed the order, not to accounts payable.
• There's a question about the delivery: something short, damaged or unsigned.
• Paying is a hassle: a check to mail, or a portal the customer has never used.
• Nobody reminded them.

An invoice that gets paid includes

• Your invoice number and the customer's PO number.
• Clear lines: what, how many, at what price.
• The invoice date and the due date, spelled out.
• The delivery: when it arrived and who signed for it.
• A link to pay it online, by card or from a bank account.

A reminder schedule that works

Send a friendly reminder 3 days before the due date, another on the due date, and one a week later. After that, a person should call. Automate the emails so they always go out, and stop them as soon as a payment is on its way.

Make paying the easy part

Every step between your customer and paying costs you days. A link on the invoice that opens a page where they can pay by card or from their bank, in a minute, removes most of them. For large balances, allowing part payments gets money in sooner.

Late fees and credit holds can help, but only if your agreement with the customer allows them. Check with your accountant or attorney before adding them.