Net terms: check cash timing before offering 30 days
Net 30 can help a client approve a job, but it also delays cash. Check due dates, delivery costs, and break-even pressure before you agree.
Payment terms are a financing decision. Before offering Net 30 or Net 45, confirm whether the business can cover materials, payroll, subcontractors, and fixed costs until the invoice is collected.
Start from the collection date
A job can be profitable on paper and still strain cash if the client pays weeks after delivery. Compare the work schedule, invoice date, due date, and expected deposit date.
Separate profit from cash pressure
Break-even math helps you see how many sales or jobs must be completed to cover fixed costs. Net terms can increase the gap between doing that work and receiving the money.
Use milestones when risk is high
For larger jobs, consider a deposit, progress invoice, shorter due date, or smaller first scope. Confirm contract, tax, and collection rules for your location before relying on terms.