Glossary · Payment terms
Net 60
Net 60 means the full invoice amount is due within 60 days of the invoice date. In the EU, 60 days is the line above which terms need express agreement.
Under net 60, the customer has 60 days from the invoice date to pay. An invoice dated 1 September is due on 31 October.
Net 60 is common with large corporates, which use long terms to hold cash. For a small supplier it means financing two months of work for the customer — on top of the time it took to do the work.
In the EU, the Late Payment Directive treats 60 days as the default ceiling for B2B terms. Longer terms are valid only if expressly agreed in the contract and not grossly unfair to the creditor. Payment terms for public authorities are shorter still: 30 days, or 60 in limited cases.
Example
A supplier finishes a €15,000 project on 1 September and invoices that day on net 60. If the client pays on day 75, the supplier waits two and a half months for its money.