Payment Terms
Net 30 Payment Terms Explained (With Examples)
What Net 30, Net 15, 2/10 Net 30 and EOM really mean, how to calculate due dates and how to choose the right terms for your business.
By Billora Editorial Team · Published · Updated
What does Net 30 mean?
“Net 30” means the full (net) amount of the invoice is due 30 calendar days after the invoice date. An invoice dated March 2 on Net 30 terms is due April 1. Weekends and holidays count unless your agreement says otherwise.
Common payment terms
| Term | Meaning |
|---|---|
| Due on receipt | Payment expected immediately |
| Net 7 / Net 15 | Due 7 or 15 days after the invoice date |
| Net 30 / Net 60 | Due 30 or 60 days after the invoice date |
| 2/10 Net 30 | 2% discount if paid within 10 days, otherwise full amount in 30 |
| EOM | Due at the end of the month of the invoice |
How to choose payment terms
Shorter terms improve cash flow, but large clients often have fixed payment cycles of 30 to 60 days. Freelancers and small service businesses frequently use Net 7 or Net 15, sometimes with a deposit up front. Whatever you choose, agree on it before the work begins and print it on every invoice together with the actual due date.
Offering a small early-payment discount such as 2/10 Net 30 can speed up payment — but make sure your margins can absorb it.