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Payment termscalculator

Compare payment terms side by side, model how changing terms affects your cash flow, and analyze whether offering early payment discounts makes financial sense for your business.

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Compare Payment Terms

See due dates and opportunity costs across different payment terms side by side.

Get a custom payment terms recommendation for your business, based on your industry, invoice volume, and cash flow goals.

Free, no spam. We'll only send what you asked for.

How to choose the right payment terms

The right payment terms balance cash flow with client expectations. Here's a framework.

1

Start with Net 30 as default

It's the industry standard for B2B. Most clients expect it, and it gives you a reasonable cash flow cycle. Only deviate if you have a specific reason.

2

Use shorter terms for small invoices

Invoices under $1,000 should be Net 7-14. Small amounts are easy for clients to pay quickly, and waiting 30 days for $500 hurts your cash flow disproportionately.

3

Offer discounts to accelerate cash

2/10 Net 30 is a classic. It costs you 2% but gets cash in 10 days instead of 30. Run the numbers with the discount calculator above to see if it makes sense.

4

Match terms to client size

Enterprise clients often need Net 60-90 (their AP processes are slow). Freelance clients should be Net 7-14. One size doesn't fit all.

5

Always enforce with reminders

Even perfect terms mean nothing if you don't follow up. Automated invoice reminders ensure every invoice gets timely, consistent follow-up.

6

Review terms quarterly

Track which clients consistently pay late despite your terms. Tighten terms for chronic offenders or require deposits for future work.

For due date calculations and early payment discounts on individual invoices, use our Net 30 calculator. To measure your overall collection efficiency, try the DSO calculator or AR turnover calculator.

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