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What does net 15, net 30, and net 60 mean?


Asked by Jazmin Shah on Dec 14, 2021 vb.net



You’ve sent off an invoice and are excited to finally get paid for your work. Then, their accounts department informs you that you’ll be paid in Net 15, Net 30, Net 60, or some other Net D payment terms. Scratching your head wondering what that means?
Next,
For example, if the terms are Net 15, then the customer must pay within 15 days. If the terms are Net 30, then the customer has 30 days to pay and so on. You may find that clients prefer longer payment terms and try to negotiate, for example, asking for Net 60 rather than Net 15 when ironing out your contract.
In fact, Net 10, net 15, net 30 and net 60 (often hyphenated "net-" and/or followed by "days", e.g., "net 10 days") are forms of trade credit which specify that the net amount (the total outstanding on the invoice) is expected to be paid in full by the buyer within 10, 15, 30 or 60 days of the date when the goods are dispatched or the service is completed.
Indeed,
Net 30 refers to a payment term where the payment for the goods or services is due in full 30 days after the transaction has completed. A lot of businesses choose to offer a discount to customers if they manage to pay before the 30 days is complete. Net 30 refers to the amount owed in full, less any discounts and deductions.
Just so,
A Net 60 payment term means that the buyer has 60 days from the date of completion to pay for the order. 1/10 Net 30 means that the buyer will receive a 1% discount if payment is made within 10 days.