Net terms are the credit terms on an invoice, stating how many days after invoicing the buyer has to pay — Net 30 means payment is due in thirty days.
Sep 24, 2026
Net 30, Net 60, and Net 90 count days from the invoice date, not the delivery date, though some agreements set the clock running on receipt of goods. Terms such as "2/10 Net 30" add an early-payment discount: two per cent off if paid within ten days, otherwise the full amount at thirty.
Alternatives sit either side. Prepayment or a deposit shifts the risk to the buyer; consignment shifts it entirely to the brand.
Credit terms are a form of financing. A brand on Net 60 has paid its factory, its freight, and its duty — its full landed cost — long before the money arrives, and that gap has to be funded from somewhere.
This is why terms are negotiated as hard as price, and why credit limits exist per account. Extending generous terms to a buyer who pays late converts a profitable order into a cash-flow problem, and the larger the order the larger the exposure.
This one is different.
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