Key takeaways
- Net 45 means payment is due 45 days after the invoice date or other agreed start event.
- For micro and small suppliers in India, 45 days is the outer limit where there is a written agreement, so net 45 is the longest lawful standard term for them.
- It suits buyers who want more float than net 30 without crossing the limit.
- Define the start event and whether days are calendar days.
Free PDF and Excel: Net 45 due date tracker and MSME check. Get it below
What net 45 means
Net 45 is a payment term meaning the full invoice amount is due 45 days after the start date, which is normally the invoice date.
It sits between net 30 and net 60. In India it has special weight because Section 15 of the Micro, Small and Medium Enterprises Development Act sets 45 days from the day of acceptance or deemed acceptance as the longest period a buyer can agree with a micro or small supplier. Without a written agreement the period is 15 days.
A manufacturer buys fasteners from a small supplier and from a large one. It agrees net 45 with both so that the policy is the same and it stays inside the limit for the small supplier.
A delivery is accepted on 2 March. Day 45 is 16 April. The manufacturer schedules payment for 14 April so that a weekend does not push it late.
Check the start date
The MSME rule counts from the day of acceptance of goods or services, not from the invoice date. If your contract says "45 days from invoice" and the invoice reaches you late, the clock may still have started at acceptance. Align the two in the contract.
Pick the invoice date, then set the term to 45 days in the tool. The count is in calendar days.
Free PDF and Excel
Net 45 due date tracker and MSME check
A tracker that shows the due date for invoices on net 45, plus an MSME supplier check.
- Due date tracker
- MSME check list
- Start event guide
- Excel register with days left
Who uses it
- Indian buyers with MSME suppliers.
- Mid-sized companies that want more float than net 30.
- Buyers who cannot offer net 60 because of supplier cash constraints.
- Start event is acceptance or invoice date and is stated.
- MSME suppliers have been identified in the vendor master.
- Payment run dates leave room for weekends.
- Late interest is addressed. The Act ties it to a multiple of the bank rate.
Last checked: 19 October 2026. Summary of Section 15 of the MSMED Act 2006. Check the latest statute and your contract.
Frequently asked questions
What does net 45 mean?
Payment is due 45 days after the invoice date or other start event in the contract.
Why is net 45 common in India?
Because the MSMED Act limits agreed payment periods for micro and small suppliers to 45 days from acceptance.
Does the 45 days start at invoice or acceptance?
Under the Act it starts at acceptance or deemed acceptance of the goods or services. Align your contract with it.
Is net 45 better than net 30?
It is better for buyer cash and worse for supplier cash. Choose by supplier size and the law.
What if no payment term is agreed with an MSME supplier?
The Act sets 15 days from acceptance as the default.