Net 60

What is Net 60?

Net 60 is a payment term where the full amount of an invoice is due within 60 days of the invoice date. This longer payment window is often requested by larger enterprises or for high-value contracts to align with their internal accounts payable cycles.

Why It Matters

• It can be a competitive advantage when selling to large organizations that require longer payment terms.

• It requires the seller to have stronger cash reserves, as they will wait longer to receive payment for services rendered.

• It often leads to the use of invoice financing to bridge the gap between delivery and payment.

• It provides a clear legal timeframe for when a payment is considered late or overdue.