"Legally speaking, Net 30 means that buyer will pay seller in full on or before the 30th calendar day (including weekends and holidays) of when the Goods were dispatched by the Seller or the Services were fully provided."

http://www.invoiceplace.com/blog/wp-content/uploads/2008/09/invoice-sample-with-net-30-payment-terms.jpg

More from the source...

"Net 30 is a form of trade credit which specifies that the net amount (the total outstanding on the invoice) is expected to be payment received in full 30 days after the Goods are dispatched by the seller, or 30 days after the Service is completed. Net 30 terms are often coupled with a credit for early payment; e.g. the notation "2% 10, net 30" indicates that a 2% discount can be taken by the buyer only if payment is received in full within 10 days of the dispatch of the goods, and that full payment is expected within 30 days. For example, if "$1000 2/10 net 30" is written on a bill, the buyer can take a 2% discount ($1000 x .02 = $20) and make a payment of $980 within 10 days."

More here...

"A specific type of trade credit where the payment is due in full 30 days after the item is purchased. Businesses will often offer a discount with this situation, to encourage the customer to pay quicker. For example, a business might offer a 2% discount if the customer pays within 15 days. On the bill, this would be written as 2/15 net 30."
Source(s):
http://en.wikipedia.org/wiki/Net_30
http://www.businessdictionary.com/definition/net-30.html

Asker's Rating:

Permalink | Report