Payment terms, often called net terms, are an agreement that lets a business buyer pay for an order within a set window after purchase instead of at the moment of sale. Common terms are Net 30 or Net 60, meaning payment is due 30 or 60 days after the invoice date. They are standard in B2B because buyers frequently need to receive goods, process them internally, and route the bill through accounts payable before releasing funds.
How it works
You assign a term to a buyer or company account, then issue an invoice when the order is placed. The invoice states the amount due and the due date. The buyer pays by that date through whatever method you accept. Some sellers offer early-payment discounts, 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 in 30.
In Shopify B2B, you can attach payment terms to a company location so that orders placed by that buyer inherit the term automatically. Shopify then generates an invoice and can mark the order as pending payment until it is settled.
Why it matters
Net terms are often the difference between winning and losing a wholesale account. Larger buyers expect them, and requiring card-at-checkout can rule you out. They also carry real cash-flow risk, since you ship before you are paid, so most sellers extend terms only to vetted accounts.
In B2B quoting
When a quote converts to an order, the payment method matters as much as the price. If you send a quote that becomes a Shopify draft order, you can align it with the buyer’s agreed terms so the accepted quote and the resulting invoice stay consistent. That keeps the handoff from quote to paid order clean for both sides.