Payment terms set how long the buyer has to pay after an invoice. Net 30 is the default in most business-to-business agreements; Net 45, 60 and 90 appear when a buyer has leverage or a supplier is chasing volume. For the business paying, a longer term is working capital; for the business invoicing, it is a loan to the customer.
The number is only half the term. Read when the clock starts — invoice date, delivery date, or acceptance — and what happens after it runs out: interest at a stated rate, a late fee, suspension of service or shipments, or the right to terminate. "Net 30 from invoice" with the right to suspend shipments on day 31 is a very different term from "Net 30 from acceptance" with a 15-day cure period.
What to do about it
When you are the buyer, ask for the clock to start on delivery or acceptance, a cure period before any remedy, and no suspension over a disputed invoice. When you are the supplier sending your own paper, the opposite asks apply, and an early-payment discount (2/10 net 30) often moves cash faster than a shorter term.
"Customer shall pay all undisputed invoices within sixty (60) days of the invoice date (Net 60). Amounts not paid when due accrue interest at 1.5% per month."
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Definitions and negotiation guidance here are educational business decision support, not legal advice. Consult an attorney about how any clause applies to your own agreement.