The standard convention for credit terms has always been net-30. It provides your customers with enough time to pay but also allows you to receive payment within a reasonable amount of time. It seems to be the best option for all parties. Or is it? Though it is true that most businesses operate on net-30 credit terms, there is nothing special about it that makes it the best option for every situation.
Why not experiment?
What is wrong with net-20, or even net-25? Many businesses are reluctant to make the switch to these terms, but why? Every business is different. Every customer is different. It seems improbable that one credit terms could make the most sense for every situation. The only way you can find out what credit terms are right for you or right for a certain customer is by experimenting and trying it out. You may find that net-20 works better for certain customers but that sticking with net-30 makes sense for others.
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SOURCE IBPI
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