Net 30 payment terms explained

"Net 30" is shorthand for one sentence: the full (net) amount on this invoice is due 30 days after the invoice date. Net 15 means 15 days, Net 60 means 60, and "Due on receipt" means pay now.

When the clock starts

The standard reading is days from the invoice issue date, not from when the client opens the email or when the work was finished. That's why every invoice needs a clear issue date — it's the start line for the terms. If you ever need to charge late fees or escalate, the issue date plus the term is what everyone calculates from.

Which term should you use?

• Due on receipt — small one-off jobs, deposits, and new clients you haven't billed before. There's no credit relationship yet, so there's no reason to extend one.
• Net 15 — the sweet spot for most freelancers and small businesses. Long enough for a client's payment run, short enough that a missed payment is caught while the work is still fresh.
• Net 30 — the corporate default. Larger companies often pay on monthly runs and will push for Net 30 or longer. Fine, if your cash flow can carry it and the rate reflects the wait.
• Net 60 — only for clients with genuinely slow payment cycles (agencies billing big brands, government work). Treat it as a reason to charge more or ask for a deposit, not a favour.

Always write the actual date

Terms are jargon; dates are not. An invoice that says "Net 30" makes the client do arithmetic. One that says "Payment terms: Net 30 — due 30 May 2026" leaves nothing to interpret. The invoice generator sets a due date automatically when you pick a term, so both appear on the PDF.

Two things that make terms stick

First, agree the terms before the work starts — in your quote, proposal, or contract. Terms that first appear on the invoice are easy to argue with. Second, state what happens when they're missed: a simple line like "A late fee of 1.5% per month applies to overdue balances" changes how your invoice is prioritised, even if you never enforce it.

Shorter terms are usually safe

Freelancers often assume Net 30 is mandatory. It isn't. Unless a client specifically requires longer, Net 15 is widely accepted and meaningfully better for cash flow. If you're setting up your invoicing for the first time, the freelancer invoice page starts you off with sensible defaults.