Net-30 vs Net-60: Understanding Wholesale Payment Terms

If you're new to wholesale buying or selling, "Net-30" and "Net-60" are two of the terms you'll run into almost immediately — and getting them wrong, or agreeing to terms that don't fit your actual cash flow, can cause real problems on either side of a deal.

What these terms actually mean

Net-30 means payment is due 30 days after the invoice date (typically the date of delivery, though this can vary by agreement). Net-60 extends that to 60 days. Some suppliers also offer Net-15 or Net-90 depending on their own cash flow needs and how much they trust the buyer relationship.

These terms exist because they solve a real timing problem: a retailer often can't pay for inventory until they've actually sold some of it, and net terms give them the breathing room to do that without needing to pay 100% upfront before a single unit sells.

Why suppliers don't offer this to everyone, every time

From a supplier's side, extending net terms is effectively extending short-term credit — they're shipping real goods and not getting paid for a month or two. That's a meaningful cash flow commitment, which is why:

• New buyer relationships almost always start with payment upfront or a significant deposit, not net terms
• Net terms tend to get extended once a track record of on-time payment has been established
• Larger, more established buyers with a strong credit history have an easier time negotiating favorable terms from day one

How to negotiate net terms as a buyer

If you're hoping to move toward net terms with a supplier, the practical path is usually: start with upfront payment or a deposit on your first order, pay reliably and on time, and raise the conversation about net terms once you've built two or three completed orders' worth of trust. Coming in asking for Net-60 on a first order with a new supplier is a common mistake that can actually slow down getting a relationship started at all.

How to offer net terms as a supplier without hurting your cash flow

If you're a manufacturer or vendor considering offering net terms to attract more wholesale buyers, a few practical safeguards are worth building in:

• Start new relationships on shorter or no net terms, extending only once trust is established
• Set a maximum net-terms exposure per buyer, so a single late or non-paying customer can't create a serious cash flow gap
• Consider net terms only after a buyer has completed at least one or two paid-upfront orders

On Comilmart, secured payment is held and released to the seller upon order confirmation regardless of the payment structure agreed, which removes much of the risk that makes suppliers hesitant to extend terms to new buyers — see our Buyer Protection policy for the full detail.

The bottom line

Net-30 and Net-60 aren't inherently better or worse than upfront payment — they're a tool that fits certain relationships and cash flow situations better than others. Understanding what you're actually agreeing to, and building trust before asking for extended terms, matters more than which specific number you land on.