| Pages in topic: [1 2] > | "30 Days Net" Thread poster: Richard Creech
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Richard Creech 
United States
Local time: 21:57
French to English
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What do people understand "30 Days Net" to mean?
| | | | | The way I understand it | Mar 13, 2006 |
Is that if you send an invoice to a client today, you should expect the payment on April 13.
Am I wrong?
Nina
| | | | | Before searching... | Mar 14, 2006 |
... I had always understood it to mean that the payment must be cleared within 30 days (i.e sending a cheque on day 29 wasn't good enough).
Having scouted about intenetland, however, I discover that this does not appear to be the emphasis, and that opinion differs as to whether the 30 days starts from the invoice date (which at least has the advantage of being indisputable, altho' I can foresee problems if the invoice isn't actually sent for a fortnight), or the date of receipt (whi... See more ... I had always understood it to mean that the payment must be cleared within 30 days (i.e sending a cheque on day 29 wasn't good enough).
Having scouted about intenetland, however, I discover that this does not appear to be the emphasis, and that opinion differs as to whether the 30 days starts from the invoice date (which at least has the advantage of being indisputable, altho' I can foresee problems if the invoice isn't actually sent for a fortnight), or the date of receipt (which is harder to prove definitively, I would think, but "fairer" towards the payer).
All in all, then, just stating "30 days net" is probably best avoided, since it appears open to interpretation....(which is probably why you asked the question ) ▲ Collapse
| | | | | Without discount or default interest | Mar 14, 2006 |
On the basis of my commercial experience, "30 days net" means that the full invoiced amount falls due within 30 days (counted from the date of invoice unless otherwise stated) and if settled by that date the cliet is neither entitled to any discount nor will be charged default interest. My company has a supplier who indicates the following terms of payment on the invoices: "within 18 days 2% discount, 30 days net", meaning that if we settle the payment within 18 days we get 2% disount, from 19th... See more On the basis of my commercial experience, "30 days net" means that the full invoiced amount falls due within 30 days (counted from the date of invoice unless otherwise stated) and if settled by that date the cliet is neither entitled to any discount nor will be charged default interest. My company has a supplier who indicates the following terms of payment on the invoices: "within 18 days 2% discount, 30 days net", meaning that if we settle the payment within 18 days we get 2% disount, from 19th to 30th day we pay full amount and after that we may be charged default interest. ▲ Collapse
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| "30 Days Net" | Mar 14, 2006 |
... ..30 business days (monday through friday, no holiday wathsoever included)....not fair, I know!
[Edited at 2006-03-14 00:47]
| | | | Mónica Algazi
Uruguay
Local time: 22:57
Member (2005)
English to Spanish
| "30 days net" | Mar 14, 2006 |
Richard Creech wrote:
What do people understand "30 Days Net" to mean?
Hello Richard,
I first came across this expresssion in August 2005, when I did a couple of localization projects for an agency in St Louis, MO, and I too was a bit puzzled. In this case it meant 30 days after the invoice date, but it actually took them longer...
Good luck with your "30 days net", Richard!
Best regards,
Mónica
| | | | nlingua
Local time: 07:27
English to Urdu
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| If there are two options e.g. 1% 7 days / Net 30 Days ... | Mar 14, 2006 |
This indicates standard payment terms, and usually you would find it in combination with some other payment option;
e.g. 1% 7 days / Net 30 Days - meaning that payment is due in 30 days, and a 1% prompt payment discount could be availed should the payment be tendered within 7 days.
Hope that helps!
| | | | | I think the "net" is meant to be for additional clarification | Mar 14, 2006 |
I personally used to be rather puzzled by this term, when agencies came up with it, but then I assumed it was to clarify that payment must not be made "30 days gross". I have never heard the latter expression. Neverthless, if I send someone an invoice on 13th of the month, and that person receives it on 15th, if it says "30 days", without the "net", that person could rightly assume that they have 30 days from 15th to make payment, i.e. they could make the transfer on 15th day of the following ... See more I personally used to be rather puzzled by this term, when agencies came up with it, but then I assumed it was to clarify that payment must not be made "30 days gross". I have never heard the latter expression. Neverthless, if I send someone an invoice on 13th of the month, and that person receives it on 15th, if it says "30 days", without the "net", that person could rightly assume that they have 30 days from 15th to make payment, i.e. they could make the transfer on 15th day of the following month. However, it might not then reach my bank account until 18th. In this case, I would end up receiving payment about 35 days after issuing the invoice.
Therefore, the "net" clarifies two different things at once. Firstly, that the period of 30 days for payment starts to run on the date that the invoice is issued, not on the date that the postman delivers it (i.e. that it is received by the client). Secondly, it also clarifies that the money must be cleared in the bank account of the issuer of the invoice by the time 30 days are up, and not first transferred on that date. ▲ Collapse
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RobinB
United States
Local time: 20:57
German to English
| Absolutely right | Mar 14, 2006 |
Miomira Brankovic wrote:
On the basis of my commercial experience, "30 days net" means that the full invoiced amount falls due within 30 days (counted from the date of invoice unless otherwise stated) and if settled by that date the cliet is neither entitled to any discount nor will be charged default interest.
That's exactly what it means - one of the first things they taught us when I studied business way back when the core of the earth was still cooling.
Robin
| | | | Rosa Maria Duenas Rios (X)
Local time: 21:57
| Richard, you are a lawyer | Mar 14, 2006 |
I am sure you know exactly what it means. Would you mind telling us why you are asking?
| | | | Richard Creech
United States
Local time: 21:57
French to English
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TOPIC STARTER | Because I wanted to know | Mar 14, 2006 |
Rosa Maria Duenas Rios wrote:
I am sure you know exactly what it means. Would you mind telling us why you are asking?
I am indeed a lawyer, but as both a lawyer and a linguist the thing that I know is that words "mean" whatever it is that the people who use them think that they mean. Words have no inherent meaning; their meaning is an attibute of their usage (or as some would put it, is a result of their usage). I have seen this phrase many times and was honestly confused as to what it meant. I have attempted, unsuccesfully, to find some sort of formal definition somewhere. What the responses above suggest is that there is wide variance in what this term means, which makes me wonder why people would use this term at all. If people want payment within 30 days of the date of an invoice, they can say that directly. Likewise for any provisions on discounts, which I must say is an interpretation that had never even occured to me.
| | | | Claire Titchmarsh (X)
Local time: 03:57
Italian to English
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| Just be happy it doesn't say 60 days net | Mar 14, 2006 |
I'd take it to mean you can start hassling them for payment 31 days after the invoice date.
I'd like to see a few more 30-days around the place. 
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Irene N
United States
Local time: 20:57
English to Russian
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I'm non-native but I believe the meaning the word "net" bears here is the same as in "net weight" - 30 consecuitive (calender) days, period, without any "extras" and excuses for weekends, holidays, payee's birthdays:-) etc. Legally speaking, after an invoice stipulating this term is accepted by the client any payment issued on Day 31 from the date shown on the invoice should constitute grounds for late payment complaint and interest charges. I believe "net" here eliminates any ambiquities of the... See more I'm non-native but I believe the meaning the word "net" bears here is the same as in "net weight" - 30 consecuitive (calender) days, period, without any "extras" and excuses for weekends, holidays, payee's birthdays:-) etc. Legally speaking, after an invoice stipulating this term is accepted by the client any payment issued on Day 31 from the date shown on the invoice should constitute grounds for late payment complaint and interest charges. I believe "net" here eliminates any ambiquities of the matter. I think logically it should be "issued" and not "received by the contractor" because a payee can not be responsible for postal operations or contractor's bank clearing rules etc. My bank (credit union) credits payments the moment they are presented in any form and some banks deposit even wire transfers in 1-2 days and will release the money deposited on Friday only on the next Tuesday morning. ▲ Collapse
| | | | Richard Creech
United States
Local time: 21:57
French to English
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TOPIC STARTER
IreneN wrote:
Legally speaking, after an invoice stipulating this term is accepted by the client any payment issued on Day 31 from the date shown on the invoice should constitute grounds for late payment complaint and interest charges.
Are you referring to some law in particular here? I am not trying to be quarelsome, but am rather simply trying to figure out if there actually is any clear legal definition of this term, and so far I have been provided with a wide variety of definitions which are at times inconsistent with each other. People should be aware that in the United States, when a term is unclear or ambiguous in a contract ,that term will be construed against the person who drafted it.
| | | | Rosa Maria Duenas Rios (X)
Local time: 21:57
| There you go... | Mar 14, 2006 |
Richard Creech wrote:
People should be aware that in the United States, when a term is unclear or ambiguous in a contract ,that term will be construed against the person who drafted it.
I would have thought there was a clear definition; at least in the US. I am surprised to read that you (as a lawyer, I mean)are confused, and that there appears to be no "legal" definition for a term with such an extensive use!
I am now glad that my invoices state "payable no later than 30 days after the date stamped above". At least this is clearer. Of course a totally different thing is clients complying with my requirement
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