What Is Net 30? Payment Terms Explained

Net 30 means payment is due 30 days after the invoice date. A plain guide to net 30, net 15, net 60, due on receipt and other invoice payment terms.

Updated 4 min read By CodingEagles
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Net 30 is a payment term that means the full amount is due 30 days after the invoice date. The “net” part means the whole sum, with no early-payment discount applied. So “Net 30” on an invoice tells the client they have 30 days to pay in full. You can set any term you like on an invoice made with the invoice generator by writing it in the notes and adding a due date.

Here is what the common terms mean and how to choose between them.

The common net terms

The number after “net” is simply the number of days the client has to pay:

TermMeans
Due on receiptPay as soon as the invoice arrives
Net 7Pay within 7 days
Net 14Pay within 14 days
Net 30Pay within 30 days
Net 60Pay within 60 days

There is no rule that forces a particular term. It is whatever you and the client agree, ideally before the work starts.

Which term should you use?

Shorter terms tend to be paid sooner, so for a freelancer or small business “due on receipt”, net 7 or net 14 is often the better default. Net 30 and net 60 are common when you bill larger organisations, because their accounts departments run on monthly payment runs and may not pay faster even if you ask.

The honest trade-off is cash flow against winning the work. A long term ties up your money, but a big client may simply require it. Pick the shortest term the client will accept, and always pair it with a specific due date so there is no ambiguity.

Early-payment discounts

You will sometimes see terms written like “2/10 net 30”. This offers a small discount (here 2%) if the client pays early (within 10 days), with the full amount otherwise due on the standard term (30 days). It is a gentle nudge toward faster payment. Only offer a discount you can afford to give, and state it plainly on the invoice.

Write the term and the date

Whatever term you choose, do two things on the invoice: write the term in plain words, and add an explicit due date. “Net 30” alone makes the client do the maths; “Net 30, due 15 July” leaves nothing to interpret. Clear terms are one of the simplest ways to get paid faster.

To set your terms and send a clean document, open the invoice generator. It is free, with no watermark, and nothing you type leaves your browser.

Frequently asked questions

Does net 30 start from the invoice date or the delivery date?
Usually the invoice date, unless you state otherwise. To avoid any doubt, write a specific due date on the invoice as well as the term, for example 'Net 30, due 15 July'. Some buyers count from the date they receive the invoice or the goods, so if that matters to you, spell it out in your terms before the work starts.
What is the difference between net 30 and due on receipt?
Due on receipt means payment is expected straight away, as soon as the client gets the invoice. Net 30 gives them 30 days. Due on receipt and shorter terms tend to be paid sooner, while net 30 or net 60 is common when billing larger companies that run on monthly payment cycles.
Can I offer a discount for early payment?
Yes. A common format is '2/10 net 30', meaning the client can take a 2% discount if they pay within 10 days, otherwise the full amount is due in 30. It can speed up payment, but only offer a discount you are comfortable giving away. State it clearly in the notes or terms on the invoice.

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