What Is Net Terms?
The number of days a buyer has to pay an invoice in full from the invoice date.
Detailed Explanation
Common variants include Net 15, Net 30, Net 45, and Net 60. The term may start from invoice date, receipt date, or end of month depending on the agreement.
Example
The vendor agreement specifies Net 45 terms, giving the buyer 45 days from invoice date to pay.
Why It Matters
Net terms directly impact cash flow timing and should match your working capital capacity.
Related Resources
Related Payment Terms Terms
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