Net 30 (payment terms)
Net 30 is a payment term meaning the full invoice amount is due within 30 days of the invoice date. Common variations include Net 15, Net 45, and Net 60. The term sets the clock for when a payment counts as late and when you can start charging any agreed late fee.
How Net terms affect getting paid
Longer terms are a form of free credit you extend to the client, so they slow your cash flow. Shorter terms speed it up but can strain relationships if clients cannot meet them. Whatever term you choose, state it clearly on every invoice, because a client cannot be late for a deadline they were never told.
Frequently asked questions
What does Net 30 mean on an invoice?
Net 30 means the full invoice balance is due 30 days from the invoice date. It is the most common business payment term. After day 30 the invoice is overdue, and if your terms stated a late fee, you can begin applying it. Net 15, Net 45, and Net 60 work the same way with different windows.
Is Net 30 from the invoice date or delivery date?
By default Net 30 runs from the invoice date, not the delivery or service date, unless your contract says otherwise. To avoid disputes, issue the invoice promptly and state the exact due date on it. Some businesses use "Net 30 from receipt" for larger clients, but you must spell that out explicitly.
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