What Does Net 30 Mean? Payment Terms Explained
Net 30, Net 15, 2/10 Net 30 and other payment terms, plus how to get paid on time.
In this article
What Net 30 means
Net 30 means the full invoice amount is due 30 days after the invoice date. "Net" refers to the net amount: the total after any discounts. If you send an invoice dated October 1 with Net 30 terms, payment is due October 31.
The 30 days are normally calendar days counted from the invoice date, not business days and not from when the client opened the email. If you want a different starting point, such as the delivery date, state it on the invoice.
Common payment terms
| Term | Meaning |
|---|---|
| Due on receipt | Pay as soon as the invoice arrives. Common for small jobs and new clients. |
| Net 15 | Due 15 days after the invoice date. |
| Net 30 | Due 30 days after the invoice date. The most common B2B term in the US. |
| Net 45 / Net 60 / Net 90 | Longer terms, often requested by large companies and retailers. |
| 2/10 Net 30 | Take a 2% discount if paid within 10 days; otherwise the full amount is due in 30 days. |
| EOM / Net 30 EOM | Due at the end of the month, or 30 days after the end of the month the invoice was issued. |
| CIA / CWO | Cash in advance / cash with order: payment before work starts or goods ship. |
Pick Net 15, Net 30 or Net 60 in our invoice generator and the due date fills in automatically.
Create an invoiceIs Net 30 right for your business?
Net 30 is standard when you sell to other businesses, and large clients may insist on it or longer. But it means you're effectively lending your client money for a month. Before you agree, ask whether your cash flow can handle waiting 30 days, or 45 to 60 days in practice, for every invoice.
- Use shorter terms (Due on receipt or Net 15) for consumers, small one-off jobs and new clients with no payment history.
- Ask for a deposit of 25 to 50% up front on big projects, and invoice the rest at milestones.
- Accept Net 30 or longer when the client is large and reliable and the work is worth it, but price the wait into your quote.
How to get paid faster on Net 30
- Agree terms in writing before work starts, in your contract or proposal, and repeat them on every invoice.
- Invoice immediately when work is delivered. The clock doesn't start until you send it.
- Offer an early-payment discount like 2/10 Net 30. A 2% discount for paying 20 days early is attractive to clients with cash.
- Make paying easy: include ACH details and a card payment link, not just a mailing address.
- Send a friendly reminder three to five days before the due date, then again on the day after it's missed.
- Get your paperwork in early. Send your W-9 and vendor forms with your first invoice so accounts payable isn't waiting on you.
What to do when a Net 30 invoice is late
Follow up in steps: a polite reminder, then a call to the person who approves payments, then a formal past-due notice that references your agreed late fee. Late fees should be in your contract and on your invoices before you charge them. Many businesses charge 1% to 1.5% per month on overdue balances, but states limit how much interest you can charge, so check your state's rules. For large unpaid amounts, small claims court or a collections agency are the last resort.
Frequently asked questions
Does Net 30 include weekends?
Yes. Net 30 normally means 30 calendar days, including weekends and holidays. If the due date falls on a weekend, many businesses treat the next business day as the deadline, but it's best to spell out the exact due date on the invoice.
When does Net 30 start?
From the invoice date, unless your terms say otherwise. That's why it pays to send the invoice the same day you deliver the work.
What does 2/10 Net 30 mean?
The client can take a 2% discount if they pay within 10 days. Otherwise, the full amount is due within 30 days. On a $5,000 invoice, paying by day 10 would cost $4,900.
What's the difference between Net 30 and Due in 30 days?
In practice they mean the same thing. Net 30 is the standard accounting shorthand that most accounts payable departments recognize.
This article is general information for US readers, not legal, tax or financial advice. Rules, prices and platform policies change, so confirm details with official sources or a qualified professional.