Glossary: payment terms
Net 30, early-payment discounts, and the language buyers and sellers use to agree on when an invoice gets paid.
Other categories
Due on Receipt
Due on Receipt means payment is expected immediately when the buyer receives the invoice, with no formal grace period, used most often for deposits, small recurring fees, and short...
Early-payment discount
An early-payment discount is a small percentage reduction offered to a buyer who pays an invoice before the standard due date, commonly expressed as terms like 2/10 Net 30, which m...
Net 15
Net 15 means the buyer must pay the full invoice amount within 15 days of the invoice date, half the runway of the standard Net 30 default and common in freelance and small-busines...
Net 30
Net 30 means the buyer must pay the full invoice amount within 30 days of the invoice date, with no early-payment discount built into the terms.
Net 60
Net 60 means the buyer must pay the full invoice amount within 60 days of the invoice date, double the Net 30 default and common in large-corporate procurement, retail supply chain...
Payment terms
Payment terms are the agreed conditions for when and how a buyer will pay an invoice, including the due date (typically expressed as Net X), accepted payment methods, late-payment ...