What Does Net 30 Mean? Payment Terms Explained

Net 30 means payment is due 30 calendar days from the invoice date. If you send an invoice on April 1, the client must pay by May 1. It's the most common B2B payment term in the world.

Frequently Asked Questions

What does 'Net 30' mean on an invoice?

Net 30 is a payment term meaning the full invoice amount is due 30 calendar days from the invoice date.

Is Net 30 from the invoice date or the delivery date?

From the invoice date.

What's the difference between Net 30 and Due on Receipt?

Net 30 gives the client 30 days to pay; Due on Receipt means payment is expected immediately.

Can I charge a late fee if a Net 30 invoice isn't paid in time?

Yes, in most jurisdictions, as long as the policy is stated on the invoice or contract beforehand.

Should freelancers use Net 30 or shorter terms?

Most freelancers should default to Net 30 because that's what business clients expect.

What does '2/10 Net 30' mean?

2% discount if paid within 10 days; otherwise full amount due in 30 days.

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