What does Net 30 mean?
Net 30 means the full invoice is due within 30 days of the invoice date. Learn how it compares to net 15 and due-on-receipt, and when to offer it.
Tillage Team
Net 30 is a payment term meaning the full invoice balance is due within 30 days of the invoice date. It effectively extends the client short-term, interest-free credit. Variations include Net 15 and Net 60, and “2/10 Net 30” adds a 2% discount for paying within 10 days.
How Net 30 works
When you put “Net 30” on an invoice, you’re telling the client the total is due 30 calendar days after the invoice date (unless you specify otherwise, such as from the delivery date). It’s the most common B2B term because it gives clients time to process payment through their accounts-payable cycle.
Net 30 vs. Net 15 vs. due on receipt
- Due on receipt — payment is expected immediately. Best for new clients or one-off jobs where you want to be paid fast.
- Net 15 — due within 15 days. A middle ground that speeds up cash flow without feeling aggressive.
- Net 30 — due within 30 days. The B2B standard, expected by most larger clients’ finance teams.
- Net 60 / Net 90 — longer terms larger clients may request; they help the client’s cash flow at the cost of yours.
Should you offer Net 30?
Net 30 can win larger clients who expect it, but it means financing the work for a month and carrying the risk of late payment. If cash flow is tight, consider shorter terms, a deposit up front, or milestone billing. Whatever you choose, state a late fee on the invoice so overdue balances have a consequence.
Early-payment discounts (2/10 Net 30)
“2/10 Net 30” means the client can take a 2% discount if they pay within 10 days; otherwise the full amount is due in 30. It’s a common way to pull payments forward — just make sure the discount is worth the faster cash to you.
Frequently asked questions
Does Net 30 include weekends?
Yes. Net 30 means 30 calendar days, including weekends and holidays, counted from the invoice date unless you state a different start point. If the 30th day lands on a weekend, many businesses accept payment on the next business day.
Is Net 30 from the invoice date or delivery date?
By default it’s from the invoice date, but you can specify “Net 30 from delivery” or “from receipt.” State the start point clearly on the invoice so there’s no ambiguity about when payment is due.
Can I charge a late fee after Net 30?
Yes, if you disclosed the late fee in advance on the invoice or in your contract and it’s within your local legal limits. Once the 30 days pass, the agreed late fee or interest can be applied to the overdue balance.
