Feature

Net monthly – Keeping the cash flowing

Roger Haw, CEO of Flame Hardeners, reflects on how managing credit terms with due respect can ensure a healthy supply chain.

07/10/2024 11:55:18

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‘Net monthly’ is a term used on quotations and invoices to detail when payment is due. It is defined as “the invoice is due for payment at the end of the month,
following the invoice date”.

A less familiar term is ‘net terms’, which are arranged for customers seeking extended terms before paying for the goods or services.

Many other terms are also used to control
when payment is due, examples being CWO – cash with order, CIA – cash in advance, CBS – cash before shipment, COD – cash on delivery, and upon receipt – payment due immediately
when goods are received.

The most commonly use term to specify that payment is required before goods or services are provided is ‘pro forma’. This is a preliminary bill of sale sent to a
customer before final details are confirmed, with the intention of avoiding any extra exposure to changes in charges or duties.

What is the connection between all of the above terms?

Read the full article in DPA's October 2024 issue

Written By Sophia Bell

Sophia Bell is the Group Editor of DPA, Connectivity, and PBSI. She joined the team in 2020 as Assistant Editor after achieving a First-Class Honours BA in English Literature and Film Studies from the University of East Anglia. In her current role, she leads the editorial strategy, driving digital growth and ensuring each title continues to deliver trusted, relevant insight for engineering and manufacturing professionals.