Definition
Net 60 is a payment term meaning the full invoice amount is due 60 calendar days after the invoice date. It is common with large corporations and government agencies that have long approval cycles. Net 60 ties up the seller's cash for twice as long as Net 30, so sellers often price accordingly.
Net 60 in practice
If a client insists on Net 60 or Net 90, consider negotiating a deposit, an early payment discount, or a higher rate to compensate for the delayed cash. Some sellers use invoice factoring to bridge the gap.
Frequently Asked Questions
Should I accept Net 60 terms?
Accept them if the client is reliable and the margin covers the wait. Many large clients will not change their standard terms, so build the delay into your pricing and cash flow planning.