Guide
Net 30 (and Every Other Payment Term), Explained
“Net 30” means the invoice is due 30 days after its date — that’s the whole trick. But which term should you use, and how do you keep a Net term from becoming a Net-whenever term? Here’s the practical version.
The payment terms cheat sheet
| Term | What it means | When to use it |
|---|---|---|
| Due on receipt | Payment is due the day the invoice arrives. | Small jobs, first-time clients, and anywhere you can get away with it. |
| Net 7 / Net 10 | Due 7 or 10 days after the invoice date. | Ongoing client relationships where a fast rhythm is established. |
| Net 15 | Due 15 days after the invoice date. | The freelancer sweet spot — professional but not slow. A sensible default. |
| Net 30 | Due 30 days after the invoice date. | Larger clients with an accounts-payable process. The corporate standard. |
| Net 60 / Net 90 | Due 60 or 90 days after the invoice date. | Big-company procurement terms. Push back, or price the wait into the job. |
| 2/10 Net 30 | A 2% discount if paid within 10 days; otherwise due in 30. | When you want to reward fast payers without shortening the official term. |
The one rule that beats every term
Whatever term you pick, print the actual due date on the invoice. “Net 15” means nothing to a client who didn’t note your issue date; a bold “Due July 18” is unambiguous and gets paid days faster. Every field that belongs on the document is in what to include on an invoice.
Enforcing the term without the awkwardness
A term only works if something happens when it passes. Two tools do the enforcing for you: a stated late fee (work out a fair one with the late fee calculator) and a calm escalation of reminders (copy-paste them from the payment reminder templates). Most invoices never need either — the existence of both is what keeps terms honest.
Frequently asked questions
What does Net 30 mean on an invoice?
Net 30 means the full invoice amount is due 30 days after the invoice date — not 30 days after the work finished, and not the end of next month. An invoice dated June 1 with Net 30 terms is due July 1.
Does Net 30 count weekends and holidays?
Yes — Net 30 is 30 calendar days, weekends and holidays included, unless your contract explicitly says business days.
What payment terms should a freelancer use?
Net 15 is the practical default for freelancers: professional but fast. Use due-on-receipt for small or first-time jobs, and accept Net 30 for larger clients with an AP process. Always print the actual due date, not just the term.
Can I charge a late fee after the Net period?
Yes, if it was stated in your invoice or contract terms up front. A common rate is 1–1.5% per month on the overdue balance. Use a late fee calculator to work out the exact amount.