Guides & terms
Net 60 Payment Terms Explained
What net 60 means, why some clients expect it, and the cash-flow cost of waiting two months.
- What does net 60 mean on an invoice?
- Net 60 means the full amount is due 60 days after the invoice date. In Receipt Caker you type Net 60 into the payment-terms field so the longer window is clear.
- Why would a business offer net 60?
- Net 60 is often expected by large clients with slow payment cycles. Offering it can win bigger contracts, though it means waiting two months and carrying the cost until then.
What to include on a net 60 terms
What you can do
- State Net 60 in a dedicated payment-terms field
- Show the issue date the 60-day window starts from
- Add an explicit due date alongside the term
- Total the invoice and add tax automatically
- Export the finished invoice as a PNG or PDF
What net 60 means
Net 60 is a payment term stating the full invoice amount is due within 60 days. It is a longer window than net 30, giving the client roughly two months to pay.
The 60 days usually count from the invoice date, so an invoice issued at the start of a month is typically due around two months later.
Why net 60 exists
Large organisations often run payment cycles that stretch out over weeks, and some suppliers offer net 60 to fit those cycles or to win big contracts.
For the client, longer terms ease their own cash flow. For the seller, offering net 60 can be a competitive advantage when bidding for larger work.
The cash-flow cost
The downside of net 60 sits with the seller. You may deliver the work and then wait two months to be paid, financing that gap out of your own reserves.
For smaller businesses this can be difficult, so some ask for a deposit up front or offer an early-payment discount to shorten the effective wait. Consider whether your cash position can absorb a two-month delay.
Showing net 60 on your invoice
Be explicit about the longer term. Write Net 60 in the payment-terms field and add the exact due date so the client is clear that payment is expected two months out.
Receipt Caker gives you fields for the issue date, terms and total, so net 60 reads clearly on the document. The tool builds the invoice only; it does not track the long due window or collect payment.