Net 30 payment terms: what they mean and how to get paid on time

Net 30 means the client has 30 days to pay. Here is how to set terms, what the law allows in the EU and UK, and how to stop 30 days becoming 60.

William Sunjo M.Operations and compliance editor

Published: 6 August 2026
Reading time: 2 min read

"Net 30 meaning" and "net 30 payment terms" are searched by founders writing their first invoices to larger clients. The idea is simple: the client has 30 days to pay. The details decide whether 30 days stays 30.

The common terms

Term	Meaning
Due on receipt	Payable immediately
Net 15 / 30 / 60	Full amount due 15, 30 or 60 days after the invoice date
2/10 net 30	2% discount if paid within 10 days, otherwise due in 30
EOM (end of month)	Due at the end of the month the invoice is issued, or the month after
50% upfront	Half before work starts, balance on delivery

What the law says

EU

The EU Late Payment Directive limits B2B payment terms to 60 days unless the contract expressly agrees otherwise and it is not grossly unfair to the creditor. If a client pays late, the supplier can claim statutory interest and a fixed 40 EUR compensation for recovery costs, without having to prove the cost.

UK

UK late payment legislation lets a business claim interest at 8% above the Bank of England base rate on late B2B payments, plus a fixed sum per invoice that depends on its size, unless the contract sets a different remedy.

US

There is no general federal rule for private B2B payments. Late fees and interest depend on the contract and state law, so put them in the contract.

How to get paid on time

Write the due date as a date. "Due 14 December 2026" beats "net 30".
Give domestic payment details. A US client pays ACH details in its normal weekly run; a SWIFT wire needs extra approval and often waits. See receiving international payments.
Send the tax form with the first invoice. US clients often hold payment until they have your W-8. See W-8BEN vs W-8BEN-E.
Match their vendor record. The name on your invoice, bank details and tax form should be identical.
Follow up the day after the due date, politely, with the invoice attached.

When to ask for a deposit

New clients, large projects, or clients in countries where recovering a debt would be impractical: ask for 30% to 50% upfront. The invoicing guide has the full checklist.

On Rivet

Rivet's invoices show your company's account details in the invoice currency, so a US client sees ACH details and a European client sees an IBAN, and each pays the way it pays any local supplier. See Bank accounts.

Questions people ask

What does net 30 mean?

The buyer must pay the full amount within 30 days. The 30 days usually run from the invoice date. Put the exact due date on the invoice so there is no argument about when the clock started.

What does 2/10 net 30 mean?

The buyer can take a 2% discount if they pay within 10 days; otherwise, the full amount is due in 30 days. It encourages early payment at the cost of the discount.

Can I charge interest on late payments?

In the UK and EU, yes: statutory late payment rules let businesses claim interest and fixed recovery costs on late B2B invoices. In the US, it depends on the contract and state law, so put a late fee clause in the contract.

Should a new business offer net 30?

Large clients often insist on it. For new or small clients, consider a deposit up front, shorter terms, or milestones. Net 30 from a reliable client is fine; net 30 from an unknown one is credit you are extending.

Sources

Written by

William Sunjo M.

Operations and compliance editor

William covers what happens once a company starts moving money: getting the business verified, paying contractors and suppliers abroad, and keeping card spend under control. William writes for the founder or finance lead who has to make it work this week, and links every rule cited to the text it comes from.