Net 60
Payment terms requiring payment within 60 days.
Net 60 allows buyers 60 days to pay, typically offered by larger suppliers to attract or retain major clients. While it improves buyer cash flow, it strains the seller's working capital by delaying cash collection for two months. Net 60 terms are more common in manufacturing, wholesale, and large B2B transactions.
Example
A manufacturer offers Net 60 terms to a large retail chain ordering $200,000 in product, accepting the delayed payment because the volume justifies the wait.
Why It Matters for Your Business
Offering Net 60 can win large accounts but doubles your cash collection time compared to Net 30—make sure your cash reserves can sustain the longer wait.
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.
Related Financial Guides & Resources
Automate Your Finances with AI
FiscalInsights uses AI to automate bookkeeping, track expenses, and forecast cash flow — so you can focus on your business.
Start Free Trial