What Net 30 Means
Net 30 means the full amount (the “net”) is due 30 days after the invoice date. Count calendar days, including weekends: an invoice dated October 1 on Net 30 is due October 31.
The clock starts on the invoice date, so date the invoice the day you send it. Print the due date itself on the invoice too, so nobody has to count.
Common Payment Terms
| Term | What it means | Invoice dated Oct 1 is due |
|---|---|---|
| Due on receipt | Pay as soon as it arrives | Oct 1 |
| Net 7 | 7 days after the invoice date | Oct 8 |
| Net 15 | 15 days after | Oct 16 |
| Net 30 | 30 days after | Oct 31 |
| Net 45 | 45 days after | Nov 15 |
| Net 60 | 60 days after | Nov 30 |
| EOM | The end of the month the invoice is dated | Oct 31 |
| 2/10 Net 30 | 2% off if paid within 10 days, otherwise the full amount in 30 | Oct 11 for 2% off; Oct 31 in full |
Choosing Your Terms
- Shorter terms get paid sooner. Freelancers and small businesses often use Due on receipt, Net 7 or Net 15.
- Large companies often set their own. Their accounts payable may pay on Net 45 or Net 60 cycles. Ask before you start, and price it in.
- New clients, shorter terms. Start with a deposit or short terms, and extend them once a client has paid on time.
- Agree before the work starts, in your contract or proposal, and use the same terms on every invoice to that client.
Getting Paid Sooner
- Ask for a deposit at the start of a project.
- Bill retainers in advance for ongoing monthly work.
- Make paying easy: a pay link on the invoice for card or bank payment.
- Offer autopay to repeat clients, so each invoice is paid on its due date.
- Send reminders before and after the due date.
- Offer an early-payment discount, such as 2/10 Net 30, if the margin allows.
Late Fees
A late fee is easiest to collect when it's in your agreement and printed on every invoice before anything is late, for example “1.5% per month on balances past due.” 1% to 1.5% per month is common. States and countries limit late fees and interest differently, so check what applies where you and your client are. The Late Fee Calculator works out what an overdue invoice owes.