Talk:Net 30
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[edit] 2nd para
the 2nd para talks about net 30 in relation to software products, but this term is used in many other types of business. If you know this subject well, please try to generalize this para. ike9898 20:31, 17 October 2006 (UTC)
The second paragraph is just plain wrong. Payment provisions like "net 30" have NOTHING to do with the right to cancel. The two can have different time periods. You can have a net 30 payment clause without a right to cancel at all. I am deleting it.
[edit] Widely Understood Meaning
I am interested in reading about "best practices" in the payment of Net 30 terms.
While the textbook definition implies payment is "expected to be received in full" on the 30th day, I find this to rarely be true practice. Often times companies interpret this to mean "payment must be issued by the 30th day." To this, companies add mailing time.
In the case of at least one company I know, payment is issued weekly for all Net 30 invoices due on or before the date of payment. Thus, invoices are automatically aged from 30-36 days, and then mailed. Domestic payees receive payment 1-5 days later, based on the US mail cycle.
Is this a "best practice," a "widely understood definition" or "just plain wrong?
Mstefaniak 12:45, 22 March 2007 (UTC)
