Net 30 means the full invoice amount is due within 30 calendar days of the invoice date. Send an invoice dated June 1 on net 30 terms and payment is due by July 1. That is the whole definition, and it hides the part that matters: net 30 is not a payment schedule, it is a loan. You delivered the work on day zero; for up to 30 days after, you are your customer's interest-free bank.
That can be a fine trade. B2B buyers expect terms, and offering them wins deals. But you should price the loan you are giving, not stumble into it.
The variants you will actually see
| Term | Meaning |
|---|---|
| Net 15 / 30 / 60 / 90 | Full amount due 15, 30, 60, or 90 days from the invoice date |
| 2/10 net 30 | 2% discount if paid within 10 days; otherwise full amount in 30 |
| 1/10 net 30 | Same structure, 1% discount |
| Net 30 EOM | Due 30 days after the end of the month of the invoice |
| Due on receipt | Payable immediately when the invoice arrives |
Two traps in the fine print. Net 30 EOM quietly extends the clock: an invoice dated June 2 on net 30 EOM is due July 30, nearly two months of float. And the discount terms cut both ways: 2/10 net 30 sounds small, but a customer who takes the discount is effectively charging you 2% for paying 20 days early, an annualized rate near 37%. Offer it deliberately when cash today is worth more than margin, not by default.
Counting starts at the invoice date, not the handshake
The 30 days run from the date on the invoice. Every day between finishing the work and sending the invoice is free extension you granted by being slow. The single cheapest improvement to your cash collection is invoicing the day the work ships; the mechanics are in getting paid on time.
How to choose terms for your own invoices
Default shorter than you think. Small suppliers reflexively offer net 30 because it looks professional. Net 14 is normal for services, and due on receipt is normal for small projects. The customer who walks away over 14 versus 30 days was going to be a slow payer anyway.
Price the float into big terms. If a large customer demands net 60, that is two months of their working capital funded by you. Either the price reflects it or the deal is worse than it looks. This matters double when the customer is big enough to bend your terms, which is one of the quiet costs of one customer being too big.
Put late interest in writing. EU law gives B2B sellers a statutory right to late-payment interest plus recovery costs. A line on the invoice ("late payments accrue interest at 8 points above the ECB reference rate") costs nothing and changes behavior — and when an invoice does go overdue, the late payment interest calculator turns the clause into the exact figure for the reminder email.
Know what the terms do to your runway. Revenue on net 30 is not cash for a month or more. If your model treats booked revenue as money in the bank, your runway date is wrong by exactly your payment terms. Recording money when it actually arrives, which is how Plainhub models it, keeps the runway math honest no matter what terms you offer.
The one-line summary
Net 30 is a loan you make to customers to win their business. Make it on purpose: shorter defaults, invoices out the same day, interest in the contract, and a cash model that knows the difference between a sale and a payment.