Net 30 is a payment term used between businesses. It means the full invoice balance is due 30 days after the invoice date — you receive the goods now and pay for them at the end of the term.
What does Net 30 mean?
In an invoice, “net” is the total amount owed once any discounts or allowances are applied, and the number after it is the count of days you have to settle it. Net 30 therefore means: pay the whole balance within 30 days of the invoice date.
It is a form of trade credit — credit extended by a supplier rather than by a bank. No interest accrues during the term, nothing is financed, and no card is involved. The supplier is simply agreeing to be paid later.
How Net 30 payment terms work
The sequence is always the same, and the clock starts at the invoice, not at delivery:
- You place an order. Nothing is charged at checkout.
- The supplier issues an invoice. This date starts the 30-day term.
- You receive the goods and can put them to work before paying for them.
- You pay the full balance on or before day 30.
Worked example. An invoice dated 3 March on Net 30 terms is due 2 April. If the goods arrive on 20 March, the due date does not move — it is still 30 days from the invoice date.
Net 30 vs Net 15 vs Net 60
These terms differ only in length. The trade-off is cash flow for the buyer against payment speed for the supplier.
| Term | Payment due | Typically used when |
|---|---|---|
| Net 15 | 15 days from the invoice date | Newer accounts, or smaller balances |
| Net 30 | 30 days from the invoice date | The most common business-to-business term |
| Net 60 | 60 days from the invoice date | Larger or long-standing accounts |
You may also see terms written as 2/10 Net 30. That means the full balance is due in 30 days, but the buyer may take a 2% discount if they pay within 10 days.
What is a Net 30 account?
A Net 30 account is a standing arrangement with a supplier rather than a one-off term on a single invoice. Once the account is open, you order on invoice and pay 30 days later each time, instead of paying up front.
Suppliers that offer these are often called Net 30 vendors. Approval is generally assessed on the business itself, which is why a company with little trading history can often open one. At Shirtsy there is no personal guarantee and no hard credit pull; you need to be at least 18 and own at least 75% of the business.
Credit line and reported tradeline are not the same thing
These two numbers get mixed up constantly, so it is worth separating them:
- Credit line — how much you can have outstanding at any one time. Shirtsy accounts start at $400.
- Reported tradeline — the account amount recorded in your business's file, which can be up to $6,000.
A supplier advertising a large figure is usually quoting the tradeline, not the amount you can spend on day one. It is worth asking which number is being described.
Net 30 and business credit reporting
Each month Shirtsy reports the previous month's payment activity to the business credit bureaus, in your business's name — separate from your personal credit file. Reporting is simply a record of what happened on the account.
Shirtsy makes no representations or promises about your credit profile, scores, or outcomes.
Net 30 on custom apparel and business swag
Shirtsy applies Net 30 terms to custom-printed apparel, uniforms and branded merchandise, so a business can get its order into production without paying up front. Production runs 14–21 business days plus 3–7 days in transit, and the 30-day payment window runs from the invoice date independently of production.
Membership is $99 per year. You can read the full Net 30 terms, see how ordering works, or apply for a Net 30 account.
Common questions about Net 30
What does Net 30 mean?
Net 30 means the full invoice amount is due 30 days after the invoice date. "Net" refers to the total balance owed, and "30" is the number of days you have to pay it. It is a payment term, not a loan or a credit card.
Is Net 30 30 days from the invoice date or the delivery date?
Under standard Net 30 terms the clock starts on the invoice date, not the delivery date. If an invoice is dated 3 March, payment is due 2 April, even if the goods arrive later.
Does Net 30 charge interest?
No. Net 30 is trade credit, not financing: nothing accrues during the 30-day term. Charges only apply if you pay after the due date. Shirtsy's late fees are $15, then $29, then $39, and a $39 fee on a returned payment.
What is the difference between Net 30 and Net 15?
Only the length of the term. Net 15 gives you 15 days from the invoice date, Net 30 gives you 30, and Net 60 gives you 60. Longer terms leave more room between paying a supplier and being paid by your own customers.
What is a Net 30 account?
A Net 30 account is an ongoing arrangement with a supplier that lets you order on invoice and pay 30 days later, rather than paying up front each time. Approval is usually based on the business rather than the owner.
Do I need an established business to open a Net 30 account with Shirtsy?
No. A long trading history is not a requirement, and businesses with little or no established credit history open accounts. You must be at least 18 and own at least 75% of the business. There is no personal guarantee and no hard credit pull.
How much can I order on Net 30 terms with Shirtsy?
New accounts start with a $400 credit line. That is the amount you can have outstanding at one time; it is separate from the tradeline amount reported on your account, which can be up to $6,000.
Does Shirtsy report Net 30 payment activity?
Yes. Each month Shirtsy reports the previous month's payment activity to the business credit bureaus, in your business's name, separate from your personal credit file. Shirtsy makes no representations or promises about your credit profile, scores, or outcomes.
How long does a Net 30 order take to produce?
Production runs 14 to 21 business days, plus 3 to 7 days in transit. The 30-day payment window runs from the invoice date and is not affected by production time.