Net 30 terms

Net 30 means the invoice total, the net amount, is due 30 days after the invoice date, with no discount for paying early unless the terms say so. Net 60 and net 90 work the same way over longer periods.

Net terms are a form of trade credit: the brand ships the goods now and the retailer pays later, often after some of the stock has sold.

Net 30 counts from the invoice date, not the order date. Wholesale orders are often placed months before delivery, so brands usually invoice when the goods ship and the 30 days start then.

Write the start point into your terms, for example "net 30 from date of shipment", so nobody argues later about which date counts.

2/10 net 30 means the buyer can take a 2% discount by paying within 10 days, or pay the full amount by day 30. It rewards early payment and brings cash into the brand sooner.

A boutique places a $4,800 order at market. The brand ships and invoices it on 3 March 2027, so on net 30 the payment is due on 2 April 2027.

Many brands offer net terms only to accounts they trust, and ask new accounts for payment upfront, a deposit or a card on file until there is a payment history.

A common pattern is prepayment or a deposit on the first order, then net 30 once the account has paid on time. Department stores and larger chains may ask for net 60 or longer, which you should price in before you agree.

Late payments are chased with a reminder on the due date and at set intervals afterwards. Some brands hold the next shipment until an overdue invoice is paid, and they say so in their terms.

• Not saying when the clock starts

  If the terms say only "net 30", the buyer may count from delivery while you count from shipping. State the start date on the line sheet and the invoice.

• Offering terms to every new account

  Extending credit before an account has any payment history puts your cash at risk, especially for a small brand that pays for production upfront.

• Forgetting the cost of waiting

  Net 60 or net 90 means funding production for one or two months longer. Allow for that in your wholesale price or your cash plan.

• Invoicing without the buyer's PO number

  Many retailers' accounts payable teams won't pay an invoice that is missing their purchase order number, which quietly pushes payment past the due date.

ModaFlow records payment terms on every order, from prepaid and cash on delivery to net 15, 30, 45, 60 and 90, and shows how many days are left before payment is due or how many days it is overdue.

The count starts when the order ships, the wholesale convention. You can email the buyer a payment link or a Stripe invoice with their PO number in the header.