Net 30 and other payment terms explained

What Net 30 means

"Net" refers to the net amount, the full total after any discounts already shown on the invoice. "30" is the number of days the customer has to pay it. So Net 30 means: pay the whole amount within 30 days.

The 30 days are normally counted as calendar days from the invoice date, weekends and holidays included. An invoice dated October 23 on Net 30 is due on November 22. Some contracts count from the delivery date or from when the invoice is received instead, which is one more reason to print the actual due date on the invoice rather than only the term.

Net 30 is common between businesses because many companies pay their suppliers in a weekly or monthly batch. A 30-day window gives their accounts team time to approve the invoice and include it in the next run.

Net 7, 15, 60 and "due on receipt" compared

"Due on receipt" sounds strict, but in practice many clients treat it as "soon". If you need the money within a week, Net 7 with a real date is often clearer.

Longer is not friendlier. Every extra day on your terms is a day you are lending your client money for free.

2/10 Net 30: early-payment discounts

2/10 Net 30 means: the client may take 2% off if they pay within 10 days; otherwise the full amount is due in 30 days. Other versions follow the same pattern, such as 1/10 Net 30 or 2/15 Net 45.

The invoice beside this article uses it. The total is $828.00. If the café pays within 10 days, it pays $811.44 (2% is $16.56). If not, it pays $828.00 by day 30.

Should you offer it? It is a real cost. Giving up 2% to be paid 20 days sooner works out to roughly 37% a year if you look at it as interest, so it only makes sense if fast cash matters more to you than margin: you have big material costs to cover, or a client who otherwise always pays late. Many small businesses do better simply asking for shorter terms.

If you use a discount, write the discount amount and the cut-off date in the notes so the client does not have to calculate it, and decide in advance what you will do when someone takes the 2% on day 25.

How to write payment terms on an invoice

Put the terms in two places: next to the date at the top (as a due date) and in a short line near the total. Examples you can copy:

• "Payment due within 30 days of the invoice date (by November 22, 2026)."
• "Terms: Net 15. Please pay by bank transfer quoting INV-1047."
• "Due on receipt. Thank you for paying on the day of the job."
• "Terms: 2/10 Net 30. Take 2% off if paid by November 2, 2026; full amount due by November 22, 2026."

Agree the terms before you start the work, ideally in your quote or contract, and keep them the same on every invoice to that client. Terms that appear for the first time on the invoice are easy to dispute.

In Duebolt, pick On receipt, Net 7, Net 14 or Net 30, or type any number of days. The due date is calculated and printed for you.

Net 30 terms vs "Net 30 accounts"

If you search for Net 30 you will also see "Net 30 accounts" and "Net 30 vendors". That is the same idea seen from the buyer's side: a supplier (often of office or packaging supplies) lets a business order now and pay within 30 days, like a short line of credit. Some of these suppliers report on-time payments to business credit bureaus, which is why new companies open them.

For you as the seller, offering Net 30 means you are the one extending that credit. Before you do, ask yourself three questions:

1. Can I cover my own costs (materials, fuel, rent) for a month without this money?
2. Has this client paid me, or anyone I know, on time before?
3. Is the job big enough that I should ask for a deposit first?

If any answer worries you, shorten the terms or take part of the money up front.

Which term should you use?

• Paid on site or by a consumer: due on receipt, or Net 7. Homeowners rarely have an accounts department; they pay when reminded.
• A new business client: Net 14 or Net 15 until they have paid you on time a few times. For a large first job, ask for a deposit with a proforma invoice or an estimate that sets out the payment schedule.
• An established business client: Net 30 is normal and usually accepted without argument.
• A large company that insists on Net 60 or more: price it in, or ask for staged payments on long projects.

In the UK, if no payment date was agreed, gov.uk says a business payment counts as late 30 days after the customer gets the invoice or the goods or service (whichever is later), and agreed periods between businesses should usually be no longer than 60 days unless that is fair to both sides.

Whatever you choose, follow up as soon as the due date passes. Our overdue invoice email guide has a reminder schedule and templates.