Payment is expected to be made after the goods or services have been delivered, thus the name net payment terms. If a payment term is stated as net 45, it means that money is due 45 days after the delivery date. Buyers and sellers are both safeguarded by this payment schedule, allowing for smooth commercial transactions to take place. There will be less chance for misunderstanding or misinterpretation if everyone is on the same page with regards to payment terms.