Net 30 vs Net 60: Which Payment Term Should Your Business Use?
Net 30 gives a customer 30 days to pay and Net 60 gives them 60 — the right choice comes down to how much cash-flow risk your business can absorb, not just what the customer asks for.
Quick Answer
Net 30 is the safer default for most NZ suppliers: it limits how long cash is tied up in unpaid invoices. Net 60 can help win or keep larger accounts, but it doubles the funding gap between paying your own costs and being paid by the customer. Neither is universally "better" — the right term depends on the customer, the order size, and how much working capital your business can spare.
Net 30 vs Net 60 at a Glance
| Net 30 | Net 60 | |
|---|---|---|
| Wait for payment | 30 days | 60 days |
| Cash-flow impact | Moderate | Significant |
| Typical use | Default trade account term | Larger buyers, competitive negotiations |
| Best suited to | Most suppliers, most customers | Suppliers with strong working capital, or backed by a financing option |
When Net 30 Makes Sense
Net 30 is the right default for most trade relationships. It gives the customer a reasonable window to pay while keeping the supplier's own cash-flow exposure manageable, and it's simple to apply consistently across every account without special-casing larger customers.
When Net 60 Makes Sense
Net 60 tends to make sense when the order size or ongoing relationship is worth the extra cash-flow strain: a large repeat buyer, a competitive tender where matching a rival's terms is the difference between winning and losing the account, or an established customer with a long, reliable payment history.
The Cash Flow Trade-Off
Every extra day of payment term is a day the supplier funds the sale out of its own working capital. Net 60 doubles that funding period compared to Net 30, and if a supplier's own costs (stock, wages, freight) are due on shorter terms, the gap has to be covered by cash reserves or an overdraft, not by the sale itself.
A Third Option: Instalments
Rather than choosing between a shorter term that risks losing the sale and a longer term that strains cash flow, suppliers can offer the customer flexibility through PaidTerms Capital. The supplier is paid the full invoice upfront, and PaidTerms collects the customer's repayments over an agreed schedule — so the term offered to the customer no longer determines how long the supplier waits to be paid.
Frequently Asked Questions
Is Net 30 or Net 60 more common in New Zealand?
Net 30 is far more common as a default trade term. Net 60 usually appears only with larger buyers who have specifically negotiated for it.
Can I offer Net 30 to most customers and Net 60 to a few?
Yes, payment terms don't need to be uniform across every account. Many suppliers set a default term and negotiate exceptions for specific customers.
Does a longer payment term always mean a bigger sale?
Not necessarily. A longer term can help win a deal, but it doesn't change the underlying margin — it just delays when the supplier receives the cash.
What's the safest way to offer Net 60 without the cash-flow risk?
Using a service that pays the invoice upfront, such as PaidTerms Capital, removes the funding gap regardless of the term offered to the customer.
Should I ever refuse to offer Net 60?
It's reasonable to decline if the account size or relationship doesn't justify the cash-flow strain, or to counter-offer a shorter term or a part-upfront deposit instead.
Offer the Term Your Customer Wants, Get Paid the Way You Need
See how PaidTerms Capital removes the trade-off between winning the sale and waiting to be paid.
Read next: what Net 30 means, or what Net 60 means.
