"Net 90" is a payment term used in business transactions that indicates the buyer must pay the seller within 90 days of receiving an invoice. This arrangement allows the buyer to manage their cash flow more effectively, as they have a longer period to gather the necessary funds before making the payment. This term is commonly used in various industries, including manufacturing and wholesale, where large orders may require more time for payment processing. Understanding "Net 90" helps both parties set clear expectations regarding payment timelines and financial planning.