Payment terms (Net terms)

Definition

A payment term (net terms) is the agreed period within which a business customer must pay an invoice after delivery, for example 30 or 60 days. In B2B, this is the norm; consumers typically pay immediately at purchase.

Why B2B rarely pays on the spot

Business customers often want to check or process the goods delivered before paying. A payment term of, say, 30 days (net 30) gives that room, without straining the relationship.

Terms per customer or segment

Large or long-standing customers often get longer payment terms than new customers, as part of their negotiated conditions.

Practical example

A customer orders for 5,000 euros with a payment term of 60 days. The invoice and the customer portal clearly show the due date, so there's no ambiguity.

Related terms

Credit management · Order-to-cash

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