Net 30 payment terms, explained
Updated September 30, 2026
"Net 30" means the full invoice amount is due 30 days after the invoice date. It's the most common payment term between businesses, but it isn't the only option, and it isn't always the best one for a small business.
Common payment terms
| Term | What it means |
|---|---|
| Due on receipt | Pay as soon as you get the invoice. |
| Net 7 / Net 15 | Due 7 or 15 days after the invoice date. |
| Net 30 | Due 30 days after the invoice date. |
| Net 60 / Net 90 | Due 60 or 90 days after. Common with large companies. |
| 2/10 Net 30 | 2% discount if paid within 10 days; otherwise the full amount is due in 30. |
| EOM | Due at the end of the month the invoice is sent. |
Which should you use?
- Shorter terms get you paid sooner. Many freelancers and small businesses use Net 14 or Net 15.
- Match the client. Big companies often insist on Net 30 or longer; agree on it before you start.
- Put it on the invoice as a date. "Due October 31" is clearer than "Net 30."
- Pair it with a late fee. Terms without consequences are suggestions.
How Dunn handles it
You set the due date on each invoice, and Dunn shows it as a plain date, reminds your client 4 days before, and applies your late fee if it passes. For clients you bill every week or month, Dunn creates and sends recurring invoices on schedule.
Quick answers
What does Net 30 mean on an invoice?
The full amount is due 30 days after the invoice date. For an invoice dated October 1, payment is due October 31.
What does 2/10 Net 30 mean?
The client can take a 2% discount by paying within 10 days; otherwise the full amount is due within 30 days.
Is Net 15 better than Net 30?
For a small business, shorter terms usually mean faster payment and steadier cash flow. Agree on terms with each client before the work starts.
Let Dunn do the chasing
Dunn sends the reminder before the due date, adds the late fee you agreed on, and keeps the record. Works with your Stripe. From $39 a month.
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