Net 30

A payment term that gives the buyer 30 days from the invoice date to pay the full amount owed, often with no interest if paid on time.

Brief Definition

A payment term that gives the buyer 30 days from the invoice date to pay the full amount owed, often with no interest if paid on time.

What is Net 30?

Net 30 is a payment term that gives the buyer 30 days from the invoice date to pay the full amount owed. It's one of the most common trade credit arrangements in B2B commerce and is often offered interest-free — meaning the buyer pays no additional cost as long as they settle the balance within the 30-day window.

Net 30 in Modern B2B Commerce

Traditionally, Net 30 was managed manually — the seller would ship goods, send an invoice, and wait up to 30 days for payment. This created significant cash flow risk for sellers and administrative burden for both parties. Modern B2B financing platforms have digitized Net 30, offering instant approval, automated payment collection, and upfront merchant payouts.

Variations on Net Terms

While Net 30 is the most common, businesses may encounter other variations including Net 15 (payment due in 15 days), Net 60 (60 days), and Net 90 (90 days). Some arrangements also include early payment discounts such as 2/10 Net 30 — meaning a 2% discount if paid within 10 days, otherwise full payment due in 30.

Key Takeaways

Net 30 gives buyers 30 days to pay an invoice in full
It's typically interest-free if paid within the 30-day window
Modern platforms automate Net 30 with instant approvals and upfront merchant payment
Variations include Net 15, Net 60, Net 90, and early payment discounts