# Net 30

> Net 30 is a payment term meaning the full invoice amount is due 30 days after the invoice date, unless the contract sets another start date.

Net 30 is a payment term printed on an invoice or written into a contract. It means the full ("net") amount is due within 30 days. The clock usually starts on the invoice date, although some contracts count from delivery or from the date the invoice is received, so read the terms.

### Common variations

- **Net 15, Net 45, Net 60**: the same idea with a different number of days.
- **2/10 Net 30**: a 2% discount if paid within 10 days, otherwise the full amount is due in 30.
- **Net 30 EOM**: due 30 days after the end of the month in which the invoice was issued.
- **Due on receipt**: payable immediately.

### Why it matters

Payment terms are free short-term financing for the buyer and a cash flow risk for the seller. For accounts payable, the term sets a deadline the whole approval process has to fit inside.

### Example

An invoice dated March 3 on Net 30 is due April 2 (illustrative). On a $10,000 invoice with 2/10 Net 30 terms, paying by March 13 costs $9,800 instead of $10,000.

### Common pitfalls

- **Approvals that eat the term.** If an invoice spends three weeks waiting for a signature, the discount is gone and the payment is close to late.
- **Invoices received late.** A bill that sits in someone's inbox for two weeks still has the same due date.
- **Confusing "30 days" with "end of month"**, which shifts due dates by up to a month.
- **Ignoring late fees and interest** set in the contract.

Page: https://easy.wf/glossary/net-30