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Talk to our experts- Net 30
- Net 30 is a B2B payment term that gives a business buyer 30 days to pay the full amount on an invoice. It is a form of trade credit: the supplier ships the goods or completes the service first and gets paid later. The 30 days are calendar days, so weekends and holidays count.
Also called: net 30 days, net-30
How it works
The word "net" means the total after all discounts. Net 30 says that total is due in full within 30 days.
The 30 days can be counted from different start points, depending on the terms in use:
- Dispatch or completion. One definition counts from the day the goods are dispatched or the service is completed, and transit time counts toward the 30 days. Goods that spend 7 days in transit leave the buyer 23 more days to pay after they arrive.
- End of month. In some markets, such as the United Kingdom, "net 30, end of the month" means payment is due by the end of the month after the invoice month.
- Order date. Shopify starts all of its net terms from the day the order is placed.
Net 60, net 90 and early payment terms
Net 30 is one of a family of terms built the same way:
- Net 10, net 15 and net 60. The net amount is due in full within 10, 15 or 60 days. Counted from dispatch, a net 60 purchase in transit for 7 days leaves 53 days to pay after it arrives.
- Net 90. Shopify B2B lists net 90 among its net terms, next to net 7, net 15, net 30, net 45 and net 60, with payment due within the period selected.
- 2% 10, net 30. Net 30 is often paired with an early payment discount. This notation lets the buyer take 2% off if it pays in full within 10 days of the invoice date, or pay the full amount within 30 days.
- Net Monthly Account. Used in markets such as the United Kingdom, like "net 30, end of the month", it means payment in full is due by the end of the month after the invoice month.
Example
A distributor ships $10,000 of stock to a contractor on March 1 and invoices it the same day, on terms of 2% 10, net 30 counted from dispatch.
- Pay early. The contractor pays by March 11 and takes the discount: $10,000 x 0.02 = $200 off, so it pays $9,800.
- Pay on terms. The contractor skips the discount and pays the full $10,000 by March 31, the 30th calendar day after dispatch.
- Pay late. Anything still open on April 1, the 31st day after dispatch, is past due.
On Shopify
Shopify B2B is available on all plans. You set payment terms for a single company location, for all locations in a company, or for many companies at once from the Companies page.
- Term types. No payment terms (due immediately, the default), net 7, 15, 30, 45, 60 or 90, due on fulfillment, and a fixed date on individual draft orders.
- Start date. All terms start from the day the order is placed.
- Paying. Buyers can click Pay now in their customer account any time before the due date.
- Overdue orders. After the terms expire, the order displays as Overdue in customer accounts. Payment isn't captured automatically, so a saved card must be charged manually.
- Deposits. A deposit with the balance on net terms is available only on the Shopify Plus plan.
How Uncap helps
Our guide to Shopify net terms covers setup and collection. With Uncap Connect, Shopify orders sync to your ERP automatically, including net terms orders with payment due dates and outstanding balances, so your AR stays accurate without manual entry between systems.
Sources
Frequently asked questions
What does Net 30 payment mean?
It means the buyer has 30 days to pay the full amount on the invoice, after the seller has shipped the goods or completed the service.
Does Net 30 include weekends?
Yes. Net 30 counts calendar days, including weekends and holidays.
What is Net 30 from today?
Payment is due on the 30th calendar day after the start date, so terms starting June 1 fall due July 1. The agreed terms set the start date.
