Net 30 Terms
Net 30 means payment is due within 30 calendar days after the invoice date, which includes weekends and holidays. For example, an invoice that states "net 30" implies that customers are allowed to pay up to 30 days after the invoice date.
Discounts and Special Conditions
An invoice that states "3/10 net 30" offers a 3% discount for paying within 10 days after the invoice date. If no discount is taken, full payment is due within 30 days.
Terms such as "2/15 N 30" indicate a 2% discount is available if paid within 15 days. Otherwise, payment is due 30 days after the end of the month of delivery.
For example, for a delivery on July 15, if the terms are "2/15 N 30", payment must happen within 15 days after delivery for the discount, or 30 days after July 31 without the discount.
Other Variations
- "30 days STMT" means payment is due 30 days after the statement date.
- "30 days EOM" or End of the Month specifies the invoice is due 30 days after the end of the month when the goods were delivered.
What Does "Net 30" Mean on an Invoice?
"Net 30" on an invoice signifies that the client is permitted to pay within 30 calendar days after being billed. This term helps larger companies manage internal approval processes and cash flow.
What are 2/10 Net 30 Terms?
2/10 net 30 is a type of trade credit that allows for a 2 percent discount if the full invoice amount is paid within ten days. If not, the full payment is due within 30 days.
Always include payment terms in your invoices, even if you are not operating on a 30-day schedule. Outlining terms enables you to set specific due dates for payment, streamlining your small business operations.
Adding a simple note like "Payment terms: Net 30. Payment is due 30 days from invoice date." to your invoices can clarify these terms for your clients.