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 chains, and government contracting.

Applies in: Global

Net 60 is what you see when the buyer has structural leverage. Big-box retailers, large manufacturers, and government agencies use it because they can: their suppliers compete to be on the buyer's list, and the buyer extracts an interest-free 60-day loan on every invoice as part of the deal. Net 90, occasionally Net 120, exists for the same reason at the very top of the food chain.

For small suppliers, Net 60 is a cash-flow problem. Eight to ten weeks between sending the invoice and seeing the money means a real working-capital gap that has to be funded by something (cash reserves, a line of credit, invoice factoring). Negotiating Net 60 down to Net 30 is one of the highest-leverage things a small supplier can do in a relationship with a large buyer, but the buyer will rarely volunteer it.

Late-payment laws set a backstop. The UK's Late Payment of Commercial Debts Act allows interest to accrue on commercial debt 30 days after the agreed payment date, regardless of the term. The EU Late Payment Directive caps public-sector payment terms at 60 days (often 30) and gives suppliers a statutory right to interest on overdue invoices. These are the legal levers; whether to use them is usually a commercial decision based on the size of the relationship.

Common questions about Net 60

Why do big corporates use Net 60?

Working capital. A buyer with a large procurement spend can fund a meaningful share of its own operations on the float between receiving goods and paying for them. At billion-dollar scale, the difference between Net 30 and Net 60 is real cash on the balance sheet. Suppliers absorb it because the alternative is losing the contract.

Can I negotiate Net 60 down to Net 30?

Sometimes, especially with a new supplier the buyer wants to win. Common tactics: offer an early-payment discount (2/10 Net 60 is more attractive than flat Net 60), trade against price or volume, or escalate via the buyer's own treasury team (some big buyers run early-payment programs that pay at Net 10 in exchange for a discount). The straight ask rarely works without one of these levers.

Are there laws against long payment terms?

Yes, in some jurisdictions. The EU Late Payment Directive caps public-sector payment terms at 30 days (60 days only with explicit justification) and gives suppliers a statutory right to interest above 8% on overdue invoices. The UK's Late Payment of Commercial Debts Act applies similar interest rights to B2B debt. The US has no general federal cap on payment terms.

Use JupiterInvoice for Net 60

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