Payment Terms, Explained
Every common payment term you'll see on a New Zealand trade invoice or supplier account — what it means, how the due date is actually calculated, and how it compares to the others.
Payment Terms NZ Businesses Actually Use
Payment terms set out when an invoice is due, and the exact wording matters more than it looks. Some terms count from the invoice date (Net 30, Net 60). Others count from the calendar month instead (EOM 30, "20th of the month following"), while a third group — CIA, PIA, CWO, COD — requires payment before the goods even ship. This guide covers every payment term NZ suppliers actually use, in plain English, with worked examples.
Every Payment Term, Explained
Invoice-Date Terms
- What Does Net 7 or Net 14 Mean on an Invoice? — short terms for new accounts and small jobs, with worked NZ due dates
- What Does Net 30 Mean? — due 30 days after the invoice date, the most common NZ default
- What Does Net 60 Mean on an Invoice? — due 60 days after the invoice date, typically for larger buyers
- Net 30 vs Net 60: Which Should Your Business Use? — a decision framework for choosing between them
- What Is 2/10 Net 30? — an early-payment discount term, and whether NZ suppliers actually use it
Calendar-Based Terms
- What Does EOM 30 Mean on an Invoice? — due 30 days after the end of the invoice month
- What Does "20th of the Month Following" Mean? — our flagship, most-visited explainer
Advance Payment Terms
- What Does CIA Mean on an Invoice? — Cash in Advance, and how to move a customer off it
- What Does PIA Mean in Payment Terms? — Payment in Advance, and how it differs from CIA (it doesn't)
- What Does CWO Mean on a Purchase Order? — Cash With Order, paid at the point of ordering
- What Does COD Mean on a Wholesale Order? — Cash on Delivery in a B2B context, not courier COD
Reference
- The Complete NZ Payment Terms Abbreviations Cheat Sheet — every term in one table, including Net 7/14/90, CIA, PIA, CWO and COD
Related Reading
- Invoicing, Explained — the GST rules behind the invoice these terms appear on
- Trade Credit, Explained — what offering payment terms actually is
- Trade Accounts, Explained — the account these terms are usually attached to
- Trade Accounts vs Business Instalments
- The Hidden Cost of Offering Trade Credit
- Cash Flow guide — the cash conversion cycle, working capital and seasonal cash flow
Whatever Your Terms Say, Get Paid Faster
PaidTerms can pay suppliers upfront, regardless of the payment term offered to the customer — Net 30, EOM 30, or a calendar-based term.
