What are end of following month payment terms?

End of following month payment terms require that payment for goods or services be made by the end of the month following the month in which the invoice was issued. For example, if an invoice is dated April 15, the payment would be due by May 31. This allows buyers additional time to settle their accounts while providing sellers a clear timeline for expected payments. These terms are commonly used in business-to-business transactions to facilitate cash flow management.