5 Benefits Of Offering Net 30 Credit Terms

net credit terms
benefits of credit terms

The Net 30 payment term is often given to the customers as a discount for making an early payment. Oftentimes net 30 has been used without any discounts also. It is a common term that has been used for many years which means that the credit is being given to the customers and expect them to pay the full amount in the next 30 days of the invoice date. Customers often get confused on the net 30 terms. The calculation has been carried out based on the invoice date. 

The key benefit of finance and accounting outsourcing is the use of accounting experts with their enhanced processes and technologies. While using the accounting software or the invoicing software, you can enter the credit terms on your own while creating the invoice. Still undecided on offering the credit terms to your customers? Let us see the benefits of using the net 30 payment terms. 

Expanding the customer base:

Offering net 30 payment terms to the customers will help broaden the customer base. Many customers ought to appreciate the 30-day credit term option, especially for those who are experiencing cash flow problems. The compliance management solutions help us to strengthen the compliance process and gain the regulation views by mapping them to our company policies.

Serves as a strong incentive:

If you ought to sell your product or service to a larger company, then getting payment up-front or at the time of service is really impossible. However offering this type of credit terms, makes it easy to put your invoice and get payment done through a normal process. Thus the customers tend to pay within the stipulated time mentioned in the invoice. 

Early payment made easy through discounts:

This is an effective way to make the payment processes much easier. If you are following the net 30 terms and want your customer to pay early then offer an early payment discount. Offer a 2% discount if they pay within 10 days of the invoice date. So, you can change the billing to 2/10 net 30. This means if your customer pays within 10 days, they can take a 2% discount. If they choose not to pay early, then the invoice is due in 30 days.  

The business remains competitive:

It is tough to compete with other businesses. Hence offering credit terms to your customers will help your business to stay competitive in the industry. 

Building customer loyalty:

These credit terms help to establish trust and loyalty with our customers. It can even earn you a customer for life. 

Debt recovery services simplify the collection processes by providing end-to-end solutions. Thus offer credit terms by carefully screening your customers and on a selective basis. Take a wise decision on offering net 30 payment terms for your business. This ought to grow your business and increase the customer base effectively.