Net 30 Payment Terms, Explained

"Net 30" shows up on almost every corporate invoice, here's what it actually commits both sides to.

What it means

Net 30 means payment is due within 30 days of the invoice date, not 30 days from when the work finished, and not 30 business days. Just 30 calendar days from the date on the invoice. "Net" refers to the full amount owed, as opposed to a discounted early-payment amount.

Common variants

Term	Meaning
Net 15	Due in 15 days, common for smaller clients or new relationships
Net 30	Due in 30 days, the corporate default
Net 60	Due in 60 days, larger companies, often non-negotiable
2/10 Net 30	2% discount if paid within 10 days, otherwise full amount due in 30

Should you offer Net 30?

If you're a solo freelancer with limited cash flow, Net 30 can hurt, a month is a long time to wait on a single invoice, especially for a large one. Net 14 or even "due on receipt" is more common and reasonable for independent freelancers. Net 30 becomes standard once you're dealing with companies whose accounts payable departments run on a monthly cycle; in that case, it's often not negotiable, and asking for faster terms just slows down getting the contract signed in the first place.

Protecting yourself on longer terms

If a client requires Net 30 or longer, a few things help: request a deposit upfront (25–50%) so you're not carrying the full risk, state a late fee explicitly on the invoice (e.g. "1.5% monthly on overdue balances"), and track due dates so you follow up right when they pass, not weeks later.