What does Net 30 mean?
"Net 30" is a payment term that means the full invoice amount is due 30 days after the invoice date. It is one of the most common terms in business, and the same idea applies to Net 7, Net 15 and Net 60. Here is exactly how it works and how to choose the right term for your invoices.
How payment terms work
Net 30 = 30 days
Payment due 30 days from the invoice date.
Net 7 / 15 / 60
Same rule, shorter or longer windows.
From the invoice date
The clock starts when you issue, unless you state otherwise.
Early-pay discounts
"2/10 Net 30" = 2% off if paid within 10 days.
Choosing your terms
Decide the window
Net 7 for cash flow, Net 30 for business clients.
State it clearly
Write "Payment terms: Net 30" on the invoice.
Show the due date
Spell out the actual date, not just "Net 30".
Consider a discount
Offer early-payment terms to get paid faster.
Add late fees
State any late-payment charge in your terms.
Ready to bill? Open invoice44 — free, no signup, works offline.
Frequently asked questions
What does Net 30 mean?
Net 30 means the full amount of the invoice is due 30 days after the invoice date. It is a standard business payment term; "net" refers to the full amount owed, with no deductions.
Does Net 30 start from the invoice date or delivery date?
By default it runs from the invoice date. If you want it to run from delivery or receipt, state that explicitly on the invoice to avoid confusion.
What does "2/10 Net 30" mean?
It offers a 2% discount if the invoice is paid within 10 days; otherwise the full amount is due within 30 days. It is a way to encourage faster payment.
Should small businesses use Net 30?
Net 30 suits invoicing established businesses, but it can strain cash flow. Many freelancers use Net 7 or Net 14, or request a deposit up front.
Related: How to write an invoice · Invoice vs receipt · What is Net 30 · More guides