Net 30 Payment Terms Explained (and Alternatives for Freelancers)
Payment terms tell the client when an invoice must be paid. "Net 30" is one of the most common terms you will see, especially with larger companies. Choosing the right terms affects your cash flow more than many freelancers realize.
What net 30 means
Net 30 means the full invoice amount is due within 30 days of the invoice date. If you issue a 1,500 invoice on March 1 with net 30 terms, it is due March 31. Net 15 means 15 days, and net 60 means 60 days. "Due on receipt" means payment is expected right away.
Which terms should you choose
For small clients and individuals, shorter terms such as net 7 or net 14 are common and reasonable. For larger companies, net 30 is often standard, and some will ask for net 45 or net 60 because of their internal payment cycles. You can negotiate, but remember that long terms mean you are lending money to your client for free.
Ways to improve cash flow
Ask for a deposit before work begins.
Invoice in milestones instead of one big bill at the end.
Offer a small early-payment discount, for example 2 percent if paid within 10 days. Check that the discount is worth it to you.
Send the invoice the day the work is delivered.
Make it easy to pay with a bank transfer, card link or payment service.
Add a late fee
State the late fee in your contract and on the invoice, for example 1.5 percent per month. On a 1,500 invoice that is 22.50 for each month overdue. Local rules on late fees and interest differ, so check what applies in your country.
When the invoice is late
Send a polite reminder a day or two after the due date and escalate only if needed. Our guide to late-paying clients has a step-by-step approach, and the late payment email templates give you wording you can copy.
Put the terms everywhere
Write the terms in your contract, on your proposal and on every invoice. When the terms are the same in all three places, there is little room for confusion.
Create an invoice
Use our free invoice generator to add payment terms, line items and totals and save the result as a PDF. It runs in your browser and does not store your data.