Glossary
What is Net Terms?
Net terms are payment terms that give a customer a set number of days after the invoice date to pay, such as net 30 or net 60. They are common in business-to-business sales. Offering net terms can help win customers, but it also delays cash coming into your business, which can create cash flow gaps. Businesses sometimes use invoice factoring or a line of credit to bridge the period between delivering work and getting paid.
Example
A supplier invoices a retailer on net 45 terms, so payment is due 45 days after the invoice date.
Related funding
Invoice Factoring: Turn slow-paying invoices into cash now.
Related terms
Questions about an offer? Your advisor will explain every term.