Payment Terms (Net 30)
When payment is due — net 30 means 30 days from the invoice.
What it means
Payment terms state when money is due and under what conditions. 'Net 30' means the full invoice is due 30 days after the invoice date; net 15 and net 60 work the same way, and 'due on receipt' means immediately. Terms may also cover deposits, milestones, early-payment discounts (like '2/10 net 30' — 2% off if paid within 10 days), and what happens when payment is late.
Why it matters before you sign
Payment terms are your cash flow — a net-60 clause on a job with weekly labor costs means you are financing the project out of your own pocket for two months.
In a contract, it looks like this
Invoices are payable net 30 from the invoice date, with a 2% discount available for payment within 10 days.
This definition is a general, educational explanation — not legal advice. XOsign provides AI-assisted document tools and does not provide legal advice; consider consulting a qualified attorney for guidance on your specific situation. Requirements vary by state.
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