net 60
Definition
Net 60 is a payment term on an invoice that gives the buyer 60 days from the invoice date to pay the full amount owed. You will commonly see this written on invoices between businesses when one company sells goods or services to another and agrees to wait for payment rather than requiring cash upfront.
Example
If you deliver a catering order on March 1st and send an invoice marked net 60, your client has until April 30th to send you the full payment.
Watch Out
Offering net 60 terms means you are essentially giving your customer an interest-free loan for two months, so make sure your own cash flow can handle waiting that long to get paid.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.