net payment terms
Definition
Net payment terms tell your customer exactly how many days they have to pay your invoice after you deliver goods or services. For example, 'Net 30' means the customer must pay the full invoice amount within 30 days of the invoice date. The word 'net' here simply means the total amount owed, with no discounts taken off.
Example
You finish a web design project on March 1st and send an invoice with Net 30 terms, which means your client must pay you in full by March 31st.
Watch Out
Customers often stretch payment deadlines, so always include a late fee clause in your contract to discourage slow payers and protect your cash flow.
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.