Net D
notation for repayment terms
Net 10, net 15, net 30 and net 60 (often hyphenated "net-" and/or followed by "days", e.g., "net 10 days") are payment terms for trade credit, which specify that the net amount (the total outstanding on the invoice) is expected to be paid in full by the buyer within 10, 15, 30 or 60 days of the date when the goods are dispatched or the service is completed. Net 30 or net 60 terms are often coupled with a credit for early payment.
The word net in this sense means "total after all discounts". It originally derives from the Latin nitere (to shine) and nitidus (elegant, trim), and more recently from the French net (sharp, neat, clean).
Examples
The notation "net 30" indicates that full payment is expected within 30 days. If a $1000 invoice has the terms "net 30", the buyer must pay the full $1000 within 30 days.
The notation "2% 10, net 30" indicates that a 2% discount can be taken by the buyer only if payment is received in full within 10 days of the date of the invoice, and that full payment is expected within 30 days, For example, if a $1000 invoice has the terms, "2% 10, net 30", the buyer can take a 2% discount ($1000 × .02 = $20) and make a payment of $980 within 10 days or pay the full $1000 within 30 days.
Usage
Net 30 is a term that most business and municipalities (federal, state, and local) use in the United States. Net 10 and net 15 are widely used as well, especially for contractors and service-oriented businesses (as opposed to those that deal with tangible goods). Net 60 is not used as frequently due to its longer payment term.
The public source identifies “Net D” as notation for repayment terms. This brief keeps that definition visible, then builds a research path around notation, repayment and terms.
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This entry incorporates text from “Net D” on English Wikipedia. Contributors are listed in the page history. Text is available under the Creative Commons Attribution-ShareAlike 4.0 License. Selected authority identifiers and statements are retrieved from Wikidata under CC0; their references and qualifiers remain part of the verification path.