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Payment Terms
Net 60
Definition
Payment is due within 60 days of the invoice date.
Overview
Net 60 payment terms give buyers two months to pay invoices. This is common for large organizations or government contracts but creates longer waiting periods for sellers.
Example
An invoice dated March 1 with Net 60 terms requires payment by April 30.
Best Practices
Reserve for established clients or when required by contract. Factor extended wait into cash flow planning.
Common Mistakes to Avoid
Not accounting for cash flow impact
Accepting without negotiation
Missing follow-ups
Frequently Asked Questions
Should I accept Net 60 terms?
Consider your cash flow needs. You might negotiate a deposit or milestone payments instead.