Net 30 Payment Terms Explained (Net 15, Net 60 & More)
Net 30 means payment is due 30 days after the invoice date. Here's what every common payment term means and how to pick the one that gets you paid fastest.
Payment terms tell your client exactly when they need to pay. Get them right and your cash flow stays healthy; get them vague and you'll spend your time chasing money. This guide decodes every common term you'll see on an invoice.
What does Net 30 mean?
'Net 30' means the full payment is due within 30 days of the invoice date. The word 'net' refers to the total amount owed after any discounts. So an invoice dated 1 June with Net 30 terms is due by 1 July.
Common payment terms explained
- Due on Receipt — payment is expected immediately when the invoice is received.
- Net 7 / Net 10 — due within 7 or 10 days; common for freelancers and small jobs.
- Net 15 — due within 15 days; a good balance for services.
- Net 30 — due within 30 days; the standard for most B2B work.
- Net 60 / Net 90 — due within 60 or 90 days; common with large companies and slow to favour the buyer.
- 2/10 Net 30 — a 2% discount if paid within 10 days, otherwise the full amount is due in 30.
What does 2/10 Net 30 mean?
This is an early-payment discount. '2/10' means the client can take 2% off if they pay within 10 days. 'Net 30' means that if they don't take the discount, the full amount is due in 30 days. It's a simple way to encourage faster payment.
Which payment terms should you use?
- 1Freelancers and solo workers: Net 7 to Net 15, or Due on Receipt for small jobs.
- 2Service businesses: Net 15 or Net 30.
- 3Selling to large corporations: they may demand Net 30 to Net 60 — negotiate a deposit if so.
- 4Cash-flow tight? Offer a small early-payment discount like 2/10 Net 30.
Tips for getting paid on time
- Always show both the invoice date and the exact due date — don't make clients calculate it.
- State the payment terms clearly in words, e.g. 'Payment due within 30 days (Net 30)'.
- Shorter terms generally get paid faster — use the shortest the client will accept.
- Include your payment details directly on the invoice to remove friction.
Our free generator lets you set a due date and add a terms note on every invoice — You can create one free with PDF Bill Builder — no signup, download as PDF in seconds.
Frequently asked questions
What does Net 30 mean on an invoice?
Net 30 means the full invoice amount is due within 30 days of the invoice date. For example, an invoice dated June 1 with Net 30 terms must be paid by July 1.
Is Net 30 from the invoice date or delivery date?
Almost always from the invoice date, unless your contract specifically says otherwise (such as 'Net 30 from delivery' or 'from end of month'). Always state which on the invoice.
What are the best payment terms for a small business?
Shorter terms get you paid faster. Net 7 to Net 15 works well for freelancers and small businesses, while Net 30 is the standard expectation for larger B2B clients.
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