Net Terms (e.g., Net 30, Net 60)

Net terms refer to the payment terms specified on an invoice, indicating the time period a customer has to pay, such as "Net 30" (payment due within 30 days) or "Net 60" (payment due within 60 days). These terms are critical for businesses to manage cash flow and determine when payments are expected. The longer the net terms, the longer a business must wait to receive payment, which can affect liquidity.

In AR optimization, tracking net terms ensures that businesses are aware of when payments are due and can follow up accordingly. AI-powered tools automate the tracking of net terms, ensuring businesses never miss payment deadlines.

By optimizing net terms tracking, businesses can improve DSO (Days Sales Outstanding) and reduce overdue invoices. Automating this process increases efficiency and reduces delays in payment collection.