Commercial HVAC Contracts: Net 30 Terms and What They Do to Your Cash
5 min read · Cash Flow, Revenue The short answer Net 30 terms mean a commercial customer has 30 days to pay an invoice after the work is done, and in practice many commercial accounts stretch that closer to 45 or 60 days. That gap is manageable if you plan for it: price it into the job, watch your AR aging closely, and keep enough cash on hand to cover the wait. Ignore it, and commercial work, which often looks like the more stable revenue, can be the very thing that drains your cash. Key takeaways Net 30 rarely means 30 days in practice. Plan for longer. Commercial revenue is not free of cash flow risk just because it is steady. Price the payment delay into your bid, not just the labor and materials. Weekly AR aging review catches slow payers before they become a real problem. Why commercial accounts feel safe but aren't Commercial contracts often come with the promise of steady, recurring work, and that is genuinely valuable. But steady does not mean fast. A property ...
