Paying upfront for goods and services is often unrealistic in many business-to-business transactions because cash is usually tied up in inventory, payroll, rent, and day-to-day operating costs. To make buying easier and keep deals moving, sellers offer different types of payment terms that allow payment after goods or services are delivered, and Net 30 is one of the most common options.
In this article, we cover what Net 30 payment terms mean, how they work in practice and help solve cash flow problems, and when they make sense for both buyers and sellers, along with real-world examples.
Net 30 terms are a common way for businesses to give buyers time to pay after they receive goods or services. Instead of paying right away, buyers get 30 calendar days from the invoice date (including weekends and holidays) to settle the full amount.
You’ll mostly see net 30 terms in B2B deals, where one business sells to another, like wholesalers selling to retailers, or suppliers selling to contractors. Immediate payments aren't always feasible, so Net 30 helps buyers manage cash flow while still getting what they need from sellers to keep operations running.
Net 30 is already a flexible payment term. However, you can take things a step further by offering early payment discounts that give buyers an incentive to pay before the full 30-day period ends.
Here are common discount structures:
These are just standard formats; you can offer custom early payment terms based on the buyer relationship, deal size, or how tight cash flow is at the time. In all of these cases, if the buyer doesn’t pay within the early discount window, the full invoice amount is still due by the due date set in the invoice payment terms.
Understanding Net 30 is easier when you see how it works in real business situations. Here are two practical examples:
A wholesale supplier delivers a shipment of kitchenware to a retail store on March 1st and issues a $12,000 invoice with Net 30 terms.
With Net 30, the retail store has until March 31st to remit payment. The supplier may offer some percentage discounts to encourage timely payments. If the store misses the deadline, the supplier could apply a late payment fee or charge interest on the invoice balance.
A B2B ecommerce company sells $8,500 worth of construction equipment to a contractor on July 10th and issues an invoice with 2/10 Net 30 terms to encourage early payment.
This means the contractor can take a 2% discount if payment is made within 10 days, but the full $8,500 is still due by August 9th. If the contractor pays within the first 10 days, the invoice total is reduced to $8,330.
While Net 30 payment terms are the most common, they're not the only option available. Here are other net payment options you can offer clients to help meet their cash flow needs:
Net 10 and net 15 are shorter payment windows where payment is due in 10 or 15 days of the invoice date. These terms are the right fit when you're:
These terms are also suitable for buyers who can quickly resell the purchased products.
Net 45 gives buyers extra time (15 more days) to remit payments, but it's usually reserved for larger orders or long-standing customers with a verified payment history.
This option works when purchase sizes grow beyond routine orders or when billing cycles are more complex. For example, a customer who typically places small, regular orders might suddenly request a larger shipment to meet unexpected demand.
While Net 45 works well with trusted buyers, it does mean a longer wait time for wholesalers.
Net 60 allows buyers to pay 60 days after the invoice date. This longer window can be helpful for buyers with seasonal sales cycles, longer project timelines, or larger purchases that take time to turn into revenue.
From the seller’s side, net 60 ties up cash for an ever longer time period and can slow down how quickly accounts receivable turn into usable funds.
Net 90 gives buyers up to three months to pay. This type of term is typically seen in industries with even longer approval cycles or enterprise-level contracts. For sellers, net 90 comes with the most risk since cash is tied up for a long time, and the chance of late payment increases as the payment window grows.
Note: While offering longer, extended periods can be a competitive advantage and help you build stronger client relationships, it's important to proceed with caution and avoid bad debt or late payments.
Extending credit doesn’t have to be risky or complicated. With Credit Key, you can extend Net 30 trade credit confidently, knowing you’ll receive full payment quickly while maintaining cash flow. You don’t have to manage collections or worry about non-payment, so you can focus on growing your business instead of handling things in-house.
Credit Key also makes the buying experience seamless for your customers, helping you strengthen relationships and build customer loyalty. Once approved, your buyers can check out right away using a business credit line of up to $50,000 and pay their balance within 30 days, with no interest or hidden fees.
Calculate the ROI of Credit Key for your company, or contact our sales team to learn more.
To properly manage net terms, follow these best practices:
Net 30 can help sellers close more deals and attract repeat buyers by offering flexible payment terms. The downside is slower cash inflow and a higher risk of late or missed payments, which can strain cash flow if not managed well.
Net 30 should support your cash flow, not work against it. The right setup depends on your customers, order sizes, and how much risk your business can carry. With a partner like Credit Key, you can offer Net 30 more confidently while keeping payments predictable and operations running smoothly.