Payment terms tell you when an invoice must be paid. "Net 30" means the money is due 30 days after the invoice date, and "Net 60" means 60 days. It is also useful to know how long customers really take. Say four customers paid in 28, 35, 41 and 30 days. The total is 134 days, and an average finder gives 134 ÷ 4 = 33.5 days. That tells you if your customers pay on time.
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