What is Net 30?
Net 30 is a payment term meaning the full invoice amount is due within 30 days of the invoice date.
Net 30 is one of the most common payment terms in business invoicing. It means the full invoice amount (net of any discounts) must be paid within 30 calendar days from the invoice date.
- **Common payment terms explained:**
- Net 7: Payment due within 7 days
- Net 14: Payment due within 14 days
- Net 30: Payment due within 30 days (standard for B2B)
- Net 60: Payment due within 60 days (large companies)
- Due on Receipt: Payment due immediately
Early payment discounts: You might see terms like "2/10 Net 30" which means: take 2% discount if paid within 10 days, otherwise full amount due in 30 days.
UK Late Payment Rights: Under the Late Payment of Commercial Debts Act, if a business pays late, you can charge: - Interest at 8% + Bank of England base rate - Fixed compensation (£40-£100 depending on debt size)
Choosing payment terms: Shorter terms (Net 7, Net 14) improve cash flow but may deter some clients. Net 30 is a good balance for most UK freelancers and small businesses.
Examples
Invoice dated 1st March with Net 30 terms is due by 31st March
A freelancer uses Net 14 for new clients and Net 30 for established ones
Large corporations often require Net 60 payment terms
Related Terms
Invoice
An invoice is a commercial document issued by a seller to a buyer, listing the products or services provided and requesting payment.
Accounts Receivable
Accounts receivable (AR) is the money owed to a business by its customers for goods or services delivered but not yet paid for.
Remittance Advice
A remittance advice is a document sent by a payer to inform the recipient which invoices are being paid by a specific payment.
Put This Into Practice
Create professional invoices with Experi. Our software handles net 30 and more—so you can focus on your business.