Net 30
Payment terms requiring payment within 30 days.
Net 30 means full payment is due within 30 days of the invoice date. It's the most common payment term in B2B transactions. Variations include "2/10 Net 30" (2% discount if paid within 10 days, otherwise full amount due in 30) and other discount/date combinations. Businesses should evaluate whether offering Net 30 is sustainable based on their own cash flow needs.
Example
A supplier sends an invoice dated March 1 with Net 30 terms—the buyer must pay the full amount by March 31 to avoid being considered past due.
Why It Matters for Your Business
Net 30 balances client expectations with your cash flow needs, and offering early payment discounts can accelerate collections significantly.
Related Terms
More Invoicing Terms
AR Aging
A report categorizing outstanding invoices by age.
Billing Cycle
The recurring period between billing statements.
Credit Memo
A document reducing the amount owed by a customer.
Days Sales Outstanding
Average days to collect payment after a sale.
Invoice
A document requesting payment for goods or services.
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