Most of the companies that give out credit terms, give their customers Net 30 terms. Some credit grantors give out terms of Net 10, Net 15, Net 60 days or even Net 90 days.

The vendor offering Net 10 can not wait the same amount of time to place for 3rd party collections as the vendor who offers Net 30. The vendor offering Net 10 should be placing their delinquent customers at age 30 days of delinquency (at the latest), as the vendor offering Net 30 terms should place by 90 days of delinquency (at the latest).

 

DID YOU KNOW?

Studies by the ACA (American Collectors Association) have shown that for every 30 days an account remains dormant, it is 16less likely to be collected.