Definition
Net 30 is a payment term meaning the full invoice amount is due 30 calendar days after the invoice date. It is the most common business-to-business term. An invoice dated March 1 with Net 30 terms is due March 31, and becomes past due on April 1.
Net 30 in practice
The 30 days count from the invoice date, not from when the client receives or opens the invoice, unless the contract says otherwise. Sending the invoice promptly therefore directly shortens the time to payment.
Net 30 is effectively a 30-day interest-free loan to the client. Businesses with tight cash flow often prefer Net 15 or offer an early payment discount to encourage faster payment.
Frequently Asked Questions
Does Net 30 mean 30 business days?
No. Net 30 means 30 calendar days including weekends and holidays. If the due date falls on a weekend, most businesses expect payment on the next business day.
Can I charge interest after Net 30?
Only if your contract or invoice terms stated the late fee or interest rate before the work was done, and only within the limits of local law.