Net terms are an agreement that lets a buyer pay an invoice within a set number of days after delivery or invoice date, instead of paying up front. “Net 30” means the full balance is due 30 days out, “Net 60” means 60 days, and “Net 90” means 90 days. They are a standard form of short-term trade credit between businesses.
How it works
You deliver the goods or issue the invoice, and the clock starts. The number after “Net” is the payment window in calendar days. Some sellers add an early-payment discount, written as something like “2/10 Net 30,” which means the buyer can take 2 percent off if they pay within 10 days, otherwise the full amount is due at day 30. Terms are usually offered after a credit check or an established buying history, and many sellers set a credit limit alongside them.
Why it matters
For the buyer, net terms free up cash to sell inventory before the bill comes due. For the seller, offering terms often wins larger orders and repeat business, but it ties up working capital and carries the risk of late or unpaid invoices. Deciding who qualifies, for how much, and on what schedule is a real part of B2B pricing.
On Shopify
Native Shopify checkout is built around immediate payment, so pure net terms sit slightly outside the default flow. A common pattern is to quote the buyer, agree terms, then collect payment on the agreed date. When you build quotes as real draft orders, you can record the agreed terms, send the quote from your own domain, and keep the buyer inside native checkout when they are ready to pay. See the B2B quoting glossary for related terms, or pricing for plan details.