2 min read
Definition
Net 30 is a common payment term meaning the full invoice amount is due within 30 days of the invoice date. Variations like net 14 or net 60 simply change the number of days. The term sets the customer's expectation and starts the clock on your debtor days.
In plain terms
'Net 30' on an invoice tells the customer they have 30 days to pay in full. Shorter terms bring cash in faster; longer terms are effectively you financing the customer for longer. Choosing the right term is a cash-flow decision.
Why it matters
Setting sensible net terms is the foundation of getting paid on time. See end-of-month terms and how to set clear payment terms.
Related reading
End-of-month terms
End-of-month terms (EOM) set the payment due date relative to the end of the invoice month rather than the…
Read →
Early settlement discount
An early settlement discount (or prompt-payment discount) is a small reduction a seller offers for paying an…
Read →
Days sales outstanding (DSO)
Days sales outstanding (DSO) is the average number of days a business takes to collect payment after making a…
Read →
Acceleration (loan)
Acceleration is a lender demanding the whole balance at once after a default — the clause that turns a…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.