Net 30 doesn't mean 30 days from when you opened the email. It means 30 calendar days from the invoice date, which is usually a week earlier. That gap is where late fees live. Here's how each common term actually works, and when to set the reminder.
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"Net" refers to the net amount owed — the full balance, after any agreed discount. The number that follows is the count of calendar days the buyer has to pay. Net 30 is the default term in most B2B relationships, used when no other term is specified on the invoice.
The most common mistake is starting the clock from the wrong date. The 30 counts from the date printed on the invoice — not from when the invoice arrived in your inbox, not from when you opened it, not from when the goods or services were delivered. If a vendor dates the invoice the 1st and you don't see it until the 7th, you have 23 days, not 30.
Net counts include weekends and holidays unless the contract explicitly excludes them. Most contracts don't.
The terms small businesses run into most often, in order of how soon payment is due.
| Term | What it means | Common in |
|---|---|---|
| Net 10 | Due in 10 days from invoice date | Retail consignment, freelancers |
| Net 15 | Due in 15 days from invoice date | Small B2B services, agencies |
| 2/10 Net 30 | 2% off if paid by day 10, otherwise full due day 30 | Wholesale, manufacturing, distribution |
| Net 30 | Due in 30 days from invoice date — the default if no term is listed | Standard across most B2B |
| Net 45 | Due in 45 days | Larger services, mid-size B2B |
| Net 60 | Due in 60 days | Manufacturing, wholesale, large purchases |
| Net 90 | Due in 90 days | Government contracts, large retail, construction |
| EOM | Due at end of month of invoice date | Some retail and subscription services |
| COD | Cash on delivery — full payment when goods arrive | New accounts, after a missed payment |
2/10 Net 30 is the most common early-payment discount in business. The "2/10" means a 2% discount if paid within 10 days. The "Net 30" means the full amount is due within 30 days if you skip the discount.
On a $5,000 invoice, that's $100 saved by paying 20 days earlier than required. The annualized return on this is roughly 36 to 37% — far better than what the same cash earns in any bank account. If you have the cash available, this is almost always worth taking.
The trap is the same as Net 30 — the 10-day window starts on the invoice date. If you don't see the invoice for a few days, the window is already shrinking. Set a reminder for day 8 from the invoice date and the decision is made on time.
Take the invoice date, add the net number of calendar days, and that's the due date. Two worked examples:
June 12 + 30 days = July 12. The payment must reach the vendor by July 12, not be mailed on July 12. Schedule the ACH or check at least 2 business days before.
March 3 + 60 days = May 2. Set the reminder for May 2. You'll get nudged a week before, three days before, and on the day.
Discount window: April 1 to April 11. Full due: May 1. Set two reminders — one for April 8 (decide on the discount), one for May 1 (catch the deadline if you skipped it).
For more on how late payments compound when these dates slip, see what late vendor payments actually cost. For the general approach to setting up reminders, see the vendor payment reminder pillar.
Net 30 means the full invoice amount is due within 30 calendar days of the invoice date. "Net" refers to the total amount owed after any discounts. The 30 is counted from the date on the invoice itself, not from when you received it or opened it.
Take a 2% discount if you pay within 10 days, otherwise the full balance is due within 30 days. On a $5,000 invoice, paying by day 10 saves $100. The effective annualized return on taking this discount is roughly 36 to 37% — most businesses with cash on hand should take it.
Net 60 gives the buyer 60 days to pay, common in larger purchases and B2B industries with longer cash conversion cycles like manufacturing and wholesale. Net 90 gives 90 days, typical for government contracts, large retailers, and some construction. The longer the term, the more working capital the buyer holds — and the more risk the seller carries.
Yes. Net 30 is 30 calendar days, not business days. If a weekend falls between the invoice date and day 30, those weekend days count. Some contracts shift the due date to the next business day if day 30 lands on a weekend or holiday, but the default is calendar days.
On the invoice date printed on the invoice. That date is set by the seller, not by when you received the invoice. If a vendor dates the invoice on the 1st and emails it on the 7th, you have 23 days to pay — not 30. Always check the invoice date when calculating the due date.
Set the reminder for the due date itself. You'll get a heads-up 7 days before, again 3 days before, then 1 day before, and on the day. For invoices with a 2/10 Net 30 discount, set a second reminder for day 8 — that gives you 48 hours to decide whether to take the discount.
Set a reminder for the due date when the invoice arrives. You'll get an email a week before — enough time to take the discount or schedule the ACH. Free, no account, takes 30 seconds.
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