Net 30/60/90

What Is Net 30/60/90?

“Net 30,” “Net 60,” and “Net 90” are payment terms specifying when a customer must pay an invoice—30, 60, or 90 days after the invoice date. These terms define the credit period extended to the buyer, helping both sides manage cash flow and working capital.

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In B2B SaaS, Net 30/60/90 governs the timing of revenue realization and cash collection. It’s a key commercial lever impacting ARR, DSO (Days Sales Outstanding), and overall liquidity planning.

Why Net 30/60/90 Matters in B2B Sales

For CROs and RevOps leaders focused on Forecasting Accurately and Hitting Your Number, payment terms directly influence revenue timing and cash visibility. Longer payment windows can delay recognized revenue, even when deals close successfully.

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Flexible Net terms can also affect deal velocity—buyers often negotiate them as part of procurement. Aligning payment timing with contract value and customer creditworthiness ensures predictability without unnecessary risk exposure.

How to Use Net 30/60/90 in Your Sales Motion

Step 1: Align with Finance on Policy

Establish clear guidelines with your finance team on standard and exception-based payment terms. Define who can approve deviations (e.g., VP of Sales or CFO) and under what deal sizes or customer profiles.

Step 2: Integrate Terms into Quoting and CPQ

Add default Net terms into your quoting tools or CPQ system. Flag any nonstandard terms for approval before the contract moves to signature.

Step 3: Use Terms as a Negotiation Lever

Offer Net 30 for standard deals. For strategic accounts or competitive bids, extend to Net 60 or Net 90 in exchange for multi-year commitments, higher ACV, or earlier renewals.

Step 4: Monitor Collections and DSO

Track invoice aging to ensure timely payments. Sales leaders should review aged receivables in QBRs to identify patterns by segment, region, or rep.

Step 5: Close the Loop on Forecasting

Incorporate payment timing into revenue forecasting to avoid overestimating short-term cash inflows. RevOps can model DSO impact when Net 60+ terms are common.

Key Metrics and Benchmarks

• Average DSO (Days Sales Outstanding): Benchmark for SaaS is typically 35–55 days; >60 days signals collection risk.
• % of Invoices Paid on Time: Aim for 85–95% compliance rate.
• Weighted Average Payment Term: Tracks the mix of Net 30/60/90 terms across the customer base.
• Cash Conversion Cycle (CCC): Measures how quickly closed deals convert to cash; directly impacted by Net term length.
• AR Aging Distribution: Useful for spotting trends in overdue receivables and forecasting accuracy.

Common Mistakes and How to Fix Them

Frequently Asked Questions

What does “Net 30 from invoice date” mean?

It means payment is due 30 days after the invoice date, not the delivery or signature date.

Is it better to offer shorter or longer payment terms?

For healthy cash flow, shorter terms like Net 30 are ideal. However, flexibility (e.g., Net 60) can be strategic with enterprise buyers.

Do Net 30/60/90 terms affect revenue recognition?

No. Revenue recognition follows delivery and contract rules under ASC 606. Payment timing influences cash flow, not recognized revenue.

How do I enforce timely payments?

Automate reminders, include late fees in contracts, and coordinate with finance or customer success if accounts become persistently late.

Can payment terms vary by region or customer type?

Yes. Enterprise deals often run Net 60–90, while SMB or credit-risk customers stay on Net 30 or prepaid.