Net 30
Also called: net 15, net 45, net 60
What is Net 30?
Net 30 means the full invoice amount is due thirty days from the invoice date. The same convention gives Net 15, Net 45 and Net 60, and variants such as 2/10 Net 30 add an early payment discount.
Why Net 30 matters
Net terms look standard but are rarely neutral. Every extra fifteen days of terms is stock and salaries you have funded on the customer's behalf.
How Net 30 works in practice
Print the actual due date rather than only the term, and start follow-up the day after it passes. Where an early payment discount is offered, compare its annualised cost against your own cost of funds.
Worked example
2/10 Net 30 means a 2% discount for paying within 10 days, with the full amount otherwise due in 30.
Frequently asked questions
Conventionally from the invoice date, which is why invoicing promptly matters.