Net 30

What does Net 30 mean?

Net 30 is a payment term that gives your client 30 days from the invoice date to pay the full amount owed. It's one of the most common payment terms in business-to-business transactions and is standard in many industries.

The "net" refers to the total amount due after any discounts or deductions. So "Net 30" simply means the net amount is due in 30 days.

Common variations

You'll see similar terms with different timeframes:

• Net 15 — Payment due within 15 days
• Net 45 — Payment due within 45 days
• Net 60 — Payment due within 60 days
• 2/10 Net 30 — 2% discount if paid within 10 days, otherwise full amount due in 30 days

When to use Net 30

Net 30 works well for established client relationships, larger projects, and B2B work where immediate payment isn't practical. It's common when working with companies that have their own accounts payable processes and payment cycles.

For smaller jobs, new clients, or residential work, you might prefer shorter terms like Net 15 or Due on Receipt to keep cash flow healthy.

Pros and cons

Offering Net 30 can make you easier to work with for commercial clients and may help you win larger contracts. However, it also means waiting longer for payment and increases the risk of late or missed payments. Consider your cash flow needs and the client's reliability before offering extended terms.