luckpanda"Net 30" is a payment term that means the buyer must pay the full amount of an invoice within 30 days. "Net" refers to the net amount, the total after any agreed discounts or credits, and "30" is the number of calendar days the buyer has to pay.
It is one of the most common terms in business-to-business trade, especially in the US and UK. It gives the buyer time to receive, check and approve the invoice, while giving the seller a clear date to expect the money.
How to count 30 days
Unless your contract says otherwise, the 30 days usually start on the invoice date and include weekends and public holidays. Day one is the day after the invoice date.
An invoice dated 12 Oct 2026 on Net 30 terms is due on 11 Nov 2026. October has 31 days, so 19 days take you to 31 Oct, and 11 more take you to 11 Nov.
Some contracts count from a different starting point, such as the date the buyer receives the invoice or the date goods are delivered. To avoid argument, write the due date on the invoice as well as the term: "Net 30, due 11 Nov 2026".
Large buyers often pay on fixed payment runs, for example once a week or twice a month. An invoice that arrives just after a run may wait until the next one, so send invoices promptly and to the right accounts address.
Common payment terms
| Term | Meaning | Example: invoice dated 12 Oct 2026 |
|---|---|---|
| Due on receipt | Payment expected immediately | Due 12 Oct 2026 |
| Net 7 | Full amount within 7 days | Due 19 Oct 2026 |
| Net 15 | Full amount within 15 days | Due 27 Oct 2026 |
| Net 30 | Full amount within 30 days | Due 11 Nov 2026 |
| Net 45 | Full amount within 45 days | Due 26 Nov 2026 |
| Net 60 | Full amount within 60 days | Due 11 Dec 2026 |
| Net 30 EOM | 30 days after the end of the invoice month | Due 30 Nov 2026 |
| 2/10 Net 30 | 2% discount if paid within 10 days, otherwise full amount in 30 | Discount until 22 Oct 2026; full amount due 11 Nov 2026 |
What 2/10 Net 30 means
"2/10 Net 30" offers an early payment discount. The buyer can take 2% off if they pay within 10 days; otherwise the full amount is due within 30 days.
On a $12,400.00 invoice, 2% is $248.00. Paying within 10 days costs the buyer $12,152.00 instead of $12,400.00.
For the buyer, that discount is worth more than it looks. Giving up 2% to keep the money for 20 extra days works out at roughly 37% a year in simple interest terms (2/98 × 365/20). That is why buyers with spare cash take these discounts, and why sellers should offer them only if faster payment is worth that much to them.
Free toolLate payment interest calculatorStatutory interest and compensation on a late UK invoice.Open the late payment interest calculatorIs Net 30 right for your business?
Net 30 is a sensible default for business clients, but it is a choice, not a rule. Think about:
- Your cash flow. If you pay staff and suppliers monthly, waiting 30 days or more for every invoice can leave you short. Shorter terms, deposits or milestone billing can help.
- The client. Large companies often insist on their own terms, sometimes 45, 60 or 90 days. You can negotiate, ask for a deposit, or price the wait into your rates.
- Your industry. Freelancers and agencies often use Net 14 or Net 15. Wholesale and manufacturing often use Net 30 to Net 60.
- Consumers. Individuals usually pay on receipt or in advance. Net terms are mainly for businesses.
How to get paid on time with Net 30
- Agree terms in writing before you start, in a quote, contract or purchase order.
- Invoice on the day you deliver, not at the end of the month.
- Show the term and the exact due date on the invoice.
- Include clear payment details and a payment link if you accept cards.
- Send a friendly reminder a few days before the due date.
- Follow up the day after the due date, then weekly, and escalate to a phone call.
- State your late payment terms on the invoice, if your contract and local law allow them.
Late payment rules by country
What happens when a Net 30 invoice is paid late depends on the law where you trade and on your contract.
United Kingdom
Under the Late Payment of Commercial Debts (Interest) Act 1998, a business can claim statutory interest on late payment from another business at 8 percentage points above the Bank of England base rate, plus fixed compensation of £40, £70 or £100 depending on the size of the debt. If no payment date was agreed, payment is due 30 days after the later of delivery or receipt of the invoice. Agreed terms between businesses can be longer, but terms over 60 days must not be grossly unfair to the supplier.
European Union
The Late Payment Directive (2011/7/EU) sets similar rules across member states. If no term is agreed, business-to-business payment is due within 30 days. Contractual terms over 60 days are allowed only if expressly agreed and not grossly unfair. The supplier can claim interest of at least 8 percentage points above the European Central Bank reference rate, and at least 40 € in recovery costs. Public authorities must generally pay within 30 days. Each country implements the rules in its own law, and changes to them have been under discussion, so check the current position.
India
The MSMED Act, 2006 protects micro and small enterprises registered under Udyam. A buyer must pay within the agreed period, which cannot exceed 45 days from acceptance of the goods or services, or within 15 days if no period was agreed. Late payment attracts compound interest with monthly rests at three times the bank rate notified by the Reserve Bank of India. Indian income tax law also disallows the buyer's deduction for such amounts until they are actually paid, a rule introduced as Section 43B(h) of the Income-tax Act, 1961. Suppliers can file claims on the MSME Samadhaan portal.
United States
There is no general federal law setting payment terms between private businesses; terms are a matter of contract and state law. Federal agencies must generally pay within 30 days under the Prompt Payment Act and pay interest if they are late. Some states and cities have their own rules, such as New York's Freelance Isn't Free laws, which require clients to pay freelancers on time.
Rates and thresholds change. Use the calculator for an estimate and confirm what you can claim with an adviser before you add charges to an invoice.
Alternatives to Net 30
- Payment in advance or a deposit. Common for new clients, custom work and international orders. A proforma invoice is often used to request it.
- Milestone billing. Invoice at agreed stages of a project.
- Shorter terms. Net 7 or Net 14 for small jobs and freelance work.
- Early payment discounts. Such as 2/10 Net 30, if faster cash is worth the cost.
- Card or online payment links that let clients pay the moment they open the invoice.