How to offer Net 30 on Shopify
Net 30 wins wholesale orders. Set it up carelessly and it also wins you a pile of unpaid invoices. Here is how to do it properly.
In short
- Write your trade terms before the first buyer orders: the term, the limit, what happens when payment is late and whether saved cards may be charged.
- Vet buyers in proportion to the risk: references for small accounts, a credit report for large ones, first order upfront for everyone new.
- In Shopify, set Net 30 on the company location and require a saved card at checkout.
- Add a limit, a hold rule and a reminder schedule, then review the aging report monthly.
Why Net 30 at all
Trade buyers ask for terms because their own cash arrives after they sell your goods. A shop that pays you on delivery is funding your stock out of its overdraft; a shop that pays you in thirty days has sold half of it first. Offering terms is often the difference between winning an account and losing it to a supplier who does.
The cost is that you become a lender. Every invoice on terms is a short, interest-free loan to another business, and some of those loans go bad. The point of setting Net 30 up properly is to keep the lending small, visible and short.
Step by step
Write your trade terms
Before anyone orders, set out the payment term, the credit limit, what happens when payment is late, whether cards saved at checkout may be charged on the due date, and, for UK buyers, your right to statutory late payment interest. Use our trade terms template.
Vet the buyer
Ask for company details, a trade reference or two and, for larger accounts, a credit check. Start new buyers on a low limit or a first order paid upfront. Our credit application guide lists what to ask.
Create the company in Shopify
In Shopify admin, add the company, its locations and contacts, and assign the right B2B catalog. Each location can have its own address, terms and contacts.
Set payment terms on the location
Choose Net 30 as the default term for the company location. Require a saved card at checkout, which makes due-date collection possible and costs the buyer nothing.
Set a credit limit and hold rule
With Terms Due, give the company a limit and decide when new orders should be held: over the limit, overdue past a grace period, or both.
Turn on reminders
Schedule a heads-up before the due date and firmer reminders after it, by email and text. The default schedule is a good start.
Review monthly
Use the aging report to spot buyers who are drifting later, and adjust limits or terms before it becomes bad debt.
Net 30 from the invoice or from the order?
Be explicit in your trade terms about when the 30 days start. Counting from the order date is simplest, and is how most merchants read the due date Shopify shows on an order placed on terms. If you prefer to count from dispatch, use due on fulfilment or a fixed date instead.
Whichever you pick, make the due date visible on the order confirmation and in your first reminder. A buyer who can see the date on day one rarely argues about it on day 31.
Worked example
The first month of a new account
A deli signs up in March. Its credit application names two suppliers who say it pays within terms, so you set a $3,000 limit on Net 30 with a hard block and require a saved card. The first order is $1,800, placed on the 4th and due on the 3rd of April.
On 29 March the deli gets a heads-up email. On 3 April the saved card is charged, the order is marked paid and the owner gets a receipt. In May they order $2,600; same again. After three on-time payments in June you raise the limit to $5,000 and they start ordering fortnightly. Nobody on your team has chased anything, and the first time you look at the account closely is to decide how much more credit to give it.
| Starting limit | $3,000 |
|---|---|
| First order | $1,800, paid day 30 |
| Limit after three on-time payments | $5,000 |
| Reminders sent by hand | 0 |
Settings that work for most merchants
Change them as you learn how your buyers behave, but these are sensible defaults.
| Setting | Suggested value | Why |
|---|---|---|
| Default term | Net 30 | Standard, and short enough to keep exposure small |
| Saved card at checkout | Required | Makes due-date collection possible; buyers rarely object |
| Default limit for new companies | One month of expected orders | Low enough to limit a loss, high enough not to block normal trade |
| Limit type for new buyers | Hard block | Until they have paid on time three times |
| Grace period before hold | 14 days | Time for a payment run to catch up, then a consequence |
| First reminder | 5 days before due | Most late payments are forgotten payments |
| Text reminders | On, from the due date | Reaches the owner's phone, not a shared inbox |
Should you offer Net 30 or Net 60?
Offer the shortest term your buyers will accept. Longer terms tie up more of your cash and make late payment more likely, because the buyer's situation has longer to change between order and payment. Our Net 30 vs Net 60 vs Net 90 guide compares them with worked figures, and the credit limits guide shows how limits and terms work together.
If a large buyer insists on Net 60, agree it with a lower limit relative to their order size, a credit report on file and a review date, and put all three in writing.
Mistakes to avoid
- Giving terms to a buyer because they asked, without a credit application or a single reference.
- Setting no limit, so the first you hear of a problem is a large overdue balance.
- Sending the first reminder after the due date instead of before it.
- Chasing by email only, to an address nobody reads between payment runs.
- Letting an overdue account keep ordering because stopping it feels awkward.
- Never reviewing limits, so a buyer who has grown gets blocked and a buyer who has shrunk keeps a limit they cannot cover.
Questions
What does Net 30 mean?
The buyer must pay the full invoice within 30 days, usually counted from the invoice or order date.
Can I offer Net 30 on Shopify without Plus?
Yes. Payment terms are included on Basic, Grow and Advanced as well as Plus.
Can I charge the buyer's card automatically on day 30?
If the buyer saved a card at checkout and your trade terms allow it, Terms Due can charge it on the due date. See due-date collection.
Can I give Net 30 to some buyers and not others?
Yes. Terms are set per company location in Shopify, so a new buyer can be on pay-upfront while an established one is on Net 30 or Net 60.
Should I offer a discount for early payment?
Terms like 2/10 Net 30 (2% off if paid within 10 days) work for buyers with cash, but 2% for 20 days is an expensive loan for you, roughly 36% a year. Most small wholesalers do better with reminders and collection than with discounts.
What happens to Net 30 orders if I uninstall the app?
Nothing changes in Shopify. The orders, terms and due dates are Shopify's; Terms Due reads them. You would simply be back to chasing by hand.
Related
Shopify B2B net terms
How Shopify B2B payment terms work on every plan in 2026, what Shopify does and does not do when invoices go overdue, and how to add credit control.
Read moreSetting credit limits
How to decide credit limits and payment terms for wholesale buyers: order value, trade references, credit checks, starting limits and when to review.
Read moreDue-date collection
Collect Shopify B2B net terms invoices automatically by charging the buyer's saved card on the due date, with advance notice and automatic retries.
Read moreStop chasing wholesale invoices by hand
Install Terms Due, set a credit limit for each buyer and let the app hold, remind and collect.
Install on Shopify