What Is Net 30? Payment Terms Explained
Payment terms tell your client how long they have to pay. Net 30 is one of the most widely used terms in freelance and business invoicing, but it is not always the right choice for every situation.
What Net 30 means
The word 'net' in payment terms means the full amount (the net amount due, with no discount applied). The number is the number of days the client has to pay, starting from the invoice date. Net 30 therefore means: the full invoice amount is due within 30 days of the invoice date.
Other common payment terms
- Net 7: payment due within 7 days. Common for small projects, digital deliverables and clients with quick approval processes.
- Net 14: payment due within 14 days. A middle ground between immediate and monthly.
- Net 30: payment due within 30 days. Standard for many larger businesses and corporate clients.
- Net 60 or Net 90: payment due within 60 or 90 days. Common in some industries (retail, publishing) but puts significant cash-flow pressure on the supplier.
- Due on receipt: payment is expected immediately or within a few days. Used for cash sales and some service businesses.
Early payment discounts (2/10 Net 30)
You may see terms like '2/10 Net 30', which means: the client gets a 2% discount if they pay within 10 days, otherwise the full amount is due within 30 days. This incentivizes faster payment and is common in product-based B2B transactions. For most freelancers, it is not worth the complexity.
Which payment terms to use as a freelancer
Net 30 is not automatically the right choice just because it is common. For small projects (under a few thousand euros or dollars), Net 7 or Net 14 is often more practical. For larger ongoing clients with structured accounts payable processes, Net 30 may be expected. Consider your cash flow: 30 days is a long time to wait on payment for completed work.
Late payment clauses
Adding a late payment clause (for example, 1.5% per month on overdue amounts) to your invoices does not guarantee payment but sets a clear expectation and gives you a basis for follow-up. Some jurisdictions have statutory late payment rules; check what applies in your location.
Invoice Studio lets you set custom payment terms on each invoice and send professional invoices from your iPhone. For more strategies on getting invoices paid on time, see the guide to getting invoices paid faster.
Common questions
- What does Net 30 mean on an invoice?
- Net 30 means the client has 30 days from the invoice date to pay the full invoice amount. For example, an invoice dated 1 November with Net 30 terms is due on 30 November.
- Is Net 30 standard for freelancers?
- Net 30 is common but not automatically right for freelancers. Shorter terms (Net 7 or Net 14) are often better for smaller projects, as they reduce the time you wait for cash. Net 30 makes more sense for larger corporate clients with formal accounts payable processes.
- What happens if a client does not pay within Net 30?
- If the invoice is overdue, follow up promptly. Send a polite reminder on day 31, a firmer reminder at day 45, and a formal demand letter if payment is still not received. If you have a late payment clause in your invoice terms, you can reference it at this point.