Glossary · Billing
Net terms
Updated
Net 30 means the invoice is due 30 days after its date; Net 15 means 15. These are the terms on which corporate accounts buy ground transportation, and they are the reason a growing operator can be busy and short of cash at the same time. The chauffeur was paid on Friday. The client pays in five weeks.
Terms are a negotiation, not a default. Large clients ask for Net 45 or Net 60 and the operator's leverage is service and reliability. Shorter terms are worth more than a small discount, which is why many operators offer one or two percent for payment within ten days. The practical tool for managing terms is the AR aging report, which buckets what is owed into current, 1 to 30, 31 to 60 and over 60 days.
The common mistake is not looking at aging until the bank balance forces it. By then the 60-day bucket holds a client who has quietly moved to a competitor, and the invoices are hard to collect. Aging should be reviewed weekly and reminders sent on a schedule.
How liverybook handles it
Each billing account carries its terms, and invoices are built from invoice lines as legs complete, per trip or batched at period end. Balance due is always recomputed from transactions, so a partial payment shows immediately, and the AR aging report breaks outstanding balances down by age for each account. An invoice reminder is one of the nine email templates sent through the tenant's own Postmark or SendGrid credentials. See billing.
Related terms
This term lives in Billing. liverybook is the operating system for ground transportation.