“Net" means that the full amount is due for payment. Thus, the terms of "net 20" mean that full payment is due in 20 days. The term may be abbreviated to "n" instead of "net".
What does net 30 mean on an Invoice?
In the US, the term “net 30” is one of the most common payment terms. It refers to a payment period, meaning the customer has a 30-day length of time to pay the total amount of their invoice. Other common net terms include net 60 for 60 days and net 90 for 90 days.
The term may be abbreviated to “n" instead of "net."
Credit Transactions
They are deferred cash transactions because payment is promised and completed at a future date. Companies often extend credit terms for payment, such as 30 days, 60 days, or 90 days, depending on the product or service being sold or industry norms.