What Do Net 7, Net 14, Net 30 and Net 60 Payment Terms Mean?

Net 7, Net 14, Net 30 and Net 60 are invoice payment terms that tell a customer how many days they have to pay an invoice.

For UK companies, these terms are commonly used when selling goods or services on credit, particularly in business-to-business (B2B) transactions.

What Does “Net” Mean on an Invoice?

“Net” means the full invoice amount is due within a specified number of days.

For example, if an invoice is dated 1 September:

• Net 7 – payment due within 7 days
• Net 14 – payment due within 14 days
• Net 30 – payment due within 30 days
• Net 60 – payment due within 60 days

Unless your contract specifies otherwise, make it clear when the payment period starts.

What Is Net 7?

Net 7 means the full invoice must be paid within 7 days.

Example:

Invoice date: 1 September
Terms: Net 7
Due date: 8 September

Net 7 can be useful for smaller invoices or businesses that require faster payment.

What Is Net 14?

Net 14 gives the customer 14 days to pay.

Example:

Invoice date: 1 September
Terms: Net 14
Due date: 15 September

This can provide customers with some flexibility without making the business wait a full month.

What Is Net 30?

Net 30 means payment is due within 30 days.

It is commonly used for B2B transactions.

Example:

Invoice date: 1 September
Terms: Net 30
Due date: 1 October

Longer payment terms can help customers manage cash flow but mean the supplier waits longer to receive its money.

What Is Net 60?

Net 60 gives the customer 60 days to pay the invoice.

These longer terms may be used with larger corporate customers or where longer credit periods have been commercially agreed.

However, Net 60 can put greater pressure on the supplier's cash flow.

Which Payment Terms Should a UK Company Use?

There is no single payment term suitable for every business.

A company might use:

New customers → Payment upfront

Smaller customers → Net 7 or Net 14

Established B2B customers → Net 30

Large corporate contracts → Net 30 or Net 60

The terms should be agreed with the customer and clearly stated on the invoice.

Should I Include an Exact Due Date?

Yes. This makes the payment obligation clearer.

Instead of writing only:

Terms: Net 30

consider writing:

Payment Terms: Net 30
Payment Due: 1 October 2026

This reduces uncertainty over when the payment period starts.

What If No Payment Terms Are Agreed?

Under UK rules, if there is no agreed payment date, a business payment generally becomes late 30 days after the customer receives the invoice or receives the goods or services, whichever is later.

GOV.UK payment obligations

Can a UK Company Charge Interest on Late Payments?

For qualifying B2B transactions, businesses may have the right to claim statutory interest and debt-recovery costs on late commercial payments.

GOV.UK late commercial payment guidance

Final Answer

Net payment terms specify how long a customer has to pay the full invoice:

Net 7 → 7 days
Net 14 → 14 days
Net 30 → 30 days
Net 60 → 60 days

For UK companies, Net 14 and Net 30 are common choices, while shorter terms can improve cash flow and longer terms may be negotiated with larger customers.

For clarity, always include both the payment term and an exact payment due date on the invoice.

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