Net 7 vs Net 14 vs Net 30 for Trades Businesses
Choose terms by job type, client type, and cash flow needs.
Trade specific context: payment term selection
Term length should match risk, client profile, and job type rather than habit. Shorter terms are often reasonable when value and expectations are clear upfront.
USA vs Australia terminology
Common USA wording: net 7, net 14, net 30
Common Australia wording: due in 7 days, 14 days, 30 days
Using familiar local wording in quotes, invoices, and reminders reduces confusion and helps approvals move faster.
Recommended billing model
Model: term based risk control
- Agree on payment terms and approval steps before work starts.
- Invoice immediately when each billable stage is complete.
- Schedule reminders before the due date and on the due date automatically.
- Escalate overdue accounts on a clear, fixed schedule.
Common blocker and fix
Frequent blocker: terms too loose for small jobs
Fix: Attach the right proof and references when you send the invoice, then confirm receipt with the approver the same day.
Example: First-time residential clients are set to shorter terms, while long-term commercial clients keep longer agreed cycles.
Common questions for payment term selection
Which term is best for trade businesses?
Use shorter terms for residential and first time clients.
Should term length vary by client type?
Yes. Align terms to payment history and project size.
Can shorter terms hurt win rates?
Not when value and expectations are explained clearly.
Metrics to review weekly
- Overdue value by aging bucket.
- Average days to payment by client type.
- Reminder response rate and promise to pay completion.
- Dispute volume and resolution lead time.
Note: Regulatory requirements differ by state and country. Use local legal and accounting advice for contract and statutory compliance.
Invoice Chase helps trade businesses send consistent reminders with less admin overhead.
