Net 60
Category: Finance
Also searched as: Net 60
Definition (plain English)
Net 60 means payment is due 60 calendar days after the agreed invoice, delivery, acceptance, or other contractual trigger.
Why it matters commercially
Longer credit terms can help the buyer sell through stock, but they increase seller financing cost, credit risk, FX exposure, and collection uncertainty.
Example
A supplier rejected Net 60 on a first order and offered Net 30 after deposit until the buyer built payment history and provided trade references.
Common mistake
Granting Net 60 because the headline margin looks healthy without pricing financing cost, credit limit, insurance, overdue escalation, and shipment hold rules.
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