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Payment Terms
Net 30
Definition
Payment is due within 30 days of the invoice date.
Overview
Net 30 is one of the most common payment terms in business. It means the full invoice amount must be paid within 30 days from the invoice date. This gives buyers time to process payments through their accounting systems.
Example
An invoice dated January 1 with Net 30 terms means payment is due by January 31.
Best Practices
Clearly state 'Net 30' on invoices. Consider offering early payment discounts to encourage faster payment.
Common Mistakes to Avoid
Confusing 30 days from invoice date vs delivery date
Not following up before due date
Not enforcing payment terms
Frequently Asked Questions
What happens if payment isn't made within 30 days?
You can charge late fees (if stated in terms), send reminders, or escalate to collections.
Can I negotiate different payment terms?
Yes, payment terms are negotiable. Some businesses use Net 15, 45, 60, or even 90 days.