What does net 60 mean on an invoice?

Net 60 is a payment term giving the buyer 60 days from the invoice date to pay in full. It is common when the buyer is a larger company with slower internal AP cycles, when the industry norm is longer terms, or when the buyer has negotiated extended terms as part of the deal.

Net 60 carries a real working-capital cost for the seller. The business has already delivered the product or service, already paid its own labor and materials, and is now waiting two full months before the invoice even becomes past due. Sellers who accept net 60 without adjusting pricing are effectively financing the customer, and that cost compounds quickly as volume grows.

Net 60 is also harder to monitor than shorter terms because the natural attention span of the team drifts. A net 30 past-due invoice stands out at the end of the next month. A net 60 invoice is still inside terms when it is 45 days old, which is precisely when a net 30 customer would already be getting an active collections call. That lag is where automated, term-aware AR monitoring pays off.