Net payment terms
Terms setting how many days a buyer has to pay an invoice in full, such as Net 30, meaning payment is due 30 days after the invoice date.
What it means
“Net” terms say how long the customer has to pay the full invoice amount. Net 30 means payment is due within 30 days, Net 60 within 60 days, and so on. The count usually starts from the invoice date, but some contracts start it from receipt of the invoice, delivery, or acceptance of the work, which can add weeks.
Net terms sometimes come with an early payment discount. “2/10 Net 30” means the buyer can take 2 percent off by paying within 10 days, and otherwise owes the full amount in 30 days. For a freelancer invoicing $10,000 on Net 60, the practical effect is funding the client for two months, which matters for cash flow.
Longer terms favor the payer, and large companies often push small suppliers toward Net 60 or Net 90. Some jurisdictions cap payment periods or give suppliers statutory interest on late business payments, and some US states have prompt payment laws for certain industries or public contracts, so the rules vary. Without a late payment clause, a missed deadline may leave you with little leverage beyond chasing the invoice.
What to watch for
- Check when the clock starts, whether invoice date, receipt, delivery, or acceptance, and whether acceptance has its own deadline.
- See whether the client can dispute invoices and withhold payment, and whether it must still pay the undisputed portion on time.
- Look for a late payment interest or fee clause, since Net terms alone often carry no consequence for missing them.
- Confirm any invoicing requirements, such as a purchase order number, because a rejected invoice can restart the clock.
Example clause
Client will pay each undisputed invoice within thirty (30) days after receipt. If Client disputes any part of an invoice, it will notify Contractor in writing within 10 days, explaining the dispute, and will pay the undisputed portion when due.
You get paid within 30 days of the client receiving your invoice, with disputes raised quickly and the rest paid anyway.