Net 45 Calculator | Invoice Payment Terms
Calculate payment due dates, early payment discounts, and late fees for Net 45 invoice terms. Streamline your accounts receivable and optimize cash flow.
Understanding Net 45 Payment Terms
Net 45 is an extended payment term providing 45 days from the invoice date for payment. This term is common in industries with longer sales cycles, larger transactions, or when sellers want to offer competitive terms to win business.
How It Works
When you issue an invoice with Net 45 terms, the buyer has 45 calendar days from the invoice date to make payment. For example, an invoice dated January 1st with Net 45 terms would be due on Feb 15, 2024.
Common Variations
- Net 45 EOM: Payment due 45 days after end of month
- 2/10 Net 45: 2% discount if paid within 10 days
- Net 45 + COD: Combined terms for partial payment
Payment Term Comparison
| Term | Payment Window | Best For | Risk Level |
|---|---|---|---|
| Net 10 | 10 days | Fast-moving goods, trusted clients | Low |
| Net 30 | 30 days | Standard B2B transactions | Medium |
| Net 45 | 45 days | Large orders, established relationships | Medium |
| Net 60 | 60 days | Enterprise clients, large contracts | Medium-High |
| Net 90 | 90 days | Government, major corporations | High |
Best Practices for Net 45 Terms
Clear Documentation
Always state payment terms prominently on invoices, quotes, and contracts.
Credit Assessment
Evaluate new customers before extending Net payment terms to minimize risk.
Early Payment Incentives
Offer small discounts (1-3%) for payments within 10 days to improve cash flow.
Consistent Follow-up
Send payment reminders before and after the due date systematically.
Late Payment Policy
Establish and communicate clear consequences for late payments upfront.
Automated Invoicing
Use invoicing software to track due dates and automate payment reminders.
Advantages & Disadvantages of Net 45
Advantages
- Competitive advantage over Net 30 competitors
- Attracts larger clients with extended AP cycles
- Suitable for high-value transactions
- Builds stronger customer relationships
- Common in manufacturing and wholesale industries
Disadvantages
- Extended cash flow gap for sellers
- Higher risk of payment default
- May require factoring or financing
- Needs robust credit assessment processes
- More demanding on accounts receivable management
Frequently Asked Questions
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