What does Net 30 mean?
Net 30 commonly means the full invoice balance is due 30 days after the agreed starting date, often the invoice date. Specify that starting date in the agreement; some buyers use receipt or acceptance dates instead.
- Net 7: payment due after 7 days
- Net 14: payment due after 14 days
- Net 30: payment due after 30 days
- Due on receipt: payment requested when the invoice is received
Worked due-date examples
Using 6 October 2026 as the invoice date and calendar days: Net 7 is due 13 October, Net 14 is due 20 October, and Net 30 is due 5 November. These examples do not adjust for weekends or public holidays.
- Write “Net 14 from invoice date; due 20 October 2026”
- Specify whether you use calendar days or business days
- Agree any weekend or holiday adjustment in advance
Write payment instructions that can be acted on
Include the amount and currency, your approved payment method and the invoice number to use as a reference. Verify the details before sending. If you agree a deposit or installment schedule, show each amount and due date.
- Amount due and currency
- Exact due date and agreed terms
- Payment method and invoice reference
- Billing contact for questions
Follow up with the remaining balance
After the due date, check for payments or disputed items before following up. Send the original invoice reference, outstanding amount and payment instructions. Agree a resolution for disputes and record any revised payment schedule.
- Confirm the invoice reached the right contact
- Subtract partial payments and credits first
- Keep a record of follow-up and agreed changes
UK late-payment research · July 2025
Why clear billing matters
28%
of UK businesses affected by late payments each year
£26bn
estimated overdue payments owed to UK businesses
86 hours
average annual chasing time for affected businesses spending staff time on late payments
UK estimates and survey findings; these are not product performance claims or global statistics. Source: Office of the Small Business Commissioner, research published 31 July 2025.
Frequently asked questions
Does Net 30 mean one calendar month?
Usually it means 30 days from the agreed starting date, rather than the same day of the next month. State the exact due date and how it is calculated in your agreement and invoice.
Can I add late payment fees?
Whether a fee or interest charge is allowed depends on your agreement and the applicable law. Do not add a charge solely because a template includes a space for it; check the rules that apply to your transaction.