NET-120
NET-120 is a payment term meaning the full invoice amount is due 120 days after the invoice date. It's the longest standard trade-credit term, used where buyers' own cash arrives slowly — most commonly solar and data center construction, where milestone payments, retainage, tax-credit timing and long-lead equipment deposits stretch project cash cycles past a quarter.
Who uses NET-120?
Suppliers selling into long-cycle industries: solar equipment distributors, electrical supply houses, and dealers of switchgear, transformers and generators. For the buyer, NET-120 aligns the payment date with when the project actually pays them. For the supplier, offering it usually means financing a third of a year of receivables — unless a trade-credit platform carries the term instead.
NET-120 vs NET-30, 60, 90
The number is the days until payment is due, counted from the invoice date. Most horizontal net-terms providers stop at NET-90 because generic underwriting can't price a 120-day energy-project receivable. See how providers compare →
How suppliers offer NET-120 without carrying it
Yellowpay funds the supplier's whole invoice within 2 business days, gives the buyer up to 120 days, and takes the buyer credit risk non-recourse. The supplier's cash no longer waits on the buyer's term.
Related terms
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