Re: When is net 30?
Posted by Penny H on October 07, 2002 at 23:18:32:
In Reply to: Re: When is net 30? posted by phyllis on August 14, 2002 at 23:07:18:
I understand the different interpretations of net 30, but finally decided that it would go on only as long as I put up with the 45 day leeway. So, now I decided that for my business, net 30 means 30 days from the date it leaves my hands. Same way as the phone bill is 30 days from the date mailed. And I strictly enforce it. On Day 31, I fax a copy of the invoice and add on the late charge. This usually gets their attention. The check almost always arrives within a few days of the fax, but so far nobody has paid the late charge. I'm keeping track, and if anybody incurs two late charges, I will start seriously collecting them. But that won't happen.
The way I see it, the money is going to be paid soon, so why not expect it on time. Why should I tolerate long time laspes just because it is convenient for somebody else? It is not convenient for me. I've paid for the raw materials long ago. No reason for a gallery to expect a small business to be their banker.