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Net Terms

The number of days a customer has to pay an invoice after receipt, e.g. Net 30, Net 60, Net 90.

In depth

Enterprise customers push for Net 60 or Net 90 as a working-capital gift to themselves; SaaS companies push back for Net 30 or annual prepay. Each 30-day extension of net terms adds ~8% to DSO on that segment.

Related terms

DSO
Days Sales Outstanding, average days to collect cash after invoicing. A working-capital efficiency metric.
Cash Collections
The cash actually received from customers in a period, the number CFOs plan runway from.
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