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Invoicing
2025-10-28
Aurex Team
5 min read

Payment Terms Explained: Net 30, Net 60, and Due on Receipt

Payment Terms Explained: Net 30, Net 60, and Due on Receipt

What do "Net 30" and "2/10 Net 30" mean? We decode the language of business payments to help you get better terms.

Common Payment Terms

  • Due on Receipt: Payment is required immediately upon receiving the invoice. Best for small projects or new clients.
  • Net 10/15/30: Payment is due 10, 15, or 30 days after the invoice date. Standard for B2B corporate work.
  • PIA (Payment in Advance): Full payment before work starts.

What is "2/10 Net 30"?

This is a smart incentive. It means: "The full amount is due in 30 days, BUT if you pay within 10 days, you get a 2% discount." This is a great strategy to encourage early payment without seeming desperate.

Which Should You Use?

  • For New Clients: 50% Upfront, Balance Due on Completion.
  • For Trusted Clients: Net 15 or Net 30.

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