Net 30 Payment Terms for Contractors and Freelancers

The word "net" refers to the net amount owed — the total after any credits or returns. The number that follows is the deadline in calendar days.

• Net 15 means payment is due 15 days after the invoice date.
• Net 30 means payment is due 30 days after the invoice date.
• Net 60 means payment is due 60 days after the invoice date.

Net 30 is the most common term in US B2B commerce. It balances trust-building with new clients against the cash flow restrictions that come with longer terms like 60 or 90.

There are variations. Discount terms like 2/10 net 30 mean the client gets a 2% discount if they pay within 10 days; otherwise, the full amount is due at 30 days. For a $5,000 invoice, that is a $100 savings for the client and you get paid 20 days sooner. Capturing that 2% early payment discount works out to roughly 37% on an annualized basis, which is why finance teams at larger companies often prioritize it.

If you are writing an invoice for the first time, put your payment terms near the top, next to the due date and accepted payment methods.

The definition says 30 days. The reality is often longer.

Telling a client "pay me within 30 days" frequently means they pay on day 30 at the earliest. Add internal approval processes, weekends, and payment processing time, and you may not see the money for 35 to 45 days. Some clients assume the 30-day window starts when they receive the invoice rather than when you issue it, which adds further delay.

The 2025 Intuit QuickBooks Small Business Late Payments Report found that 56% of US small businesses surveyed reported being owed money from unpaid invoices, averaging $17,500 per business. Nearly half (47%) reported a portion of their invoices were overdue by more than 30 days.

For a contractor who just finished a $6,000 bathroom remodel or a freelancer who delivered a month-long design project, those delays are not an accounting abstraction. They are the difference between meeting your own obligations and dipping into savings.

Net 30 is reasonable when you have enough cash reserves to absorb a 30-day gap between completing work and receiving payment.

It also makes sense when your client requires it. Industries like wholesale, manufacturing, construction, and enterprise services commonly use extended payment terms. If you are subcontracting for a general contractor whose accounts payable department runs on net 30 cycles, insisting on net 7 may cost you the contract.

Three situations where net 30 is a reasonable default:

• Repeat clients with a clean payment history. You know they pay. The 30-day window is a formality.
• Larger projects with corporate or government clients. Their AP departments are structured around net 30. Fighting the cycle adds friction without improving your outcome.
• You have other active invoices covering expenses. If revenue comes in from multiple clients on overlapping schedules, one invoice on net 30 does not starve your cash flow.

Net 15 cuts the payment window in half. Businesses that require quick cash turnover frequently use shorter terms like net 15, and these are particularly helpful for suppliers with narrow profit margins, freelancers, and small enterprises.

Consider net 15 for:

• New clients you have not worked with before. You have no payment history with them. Shortening the window limits your exposure if they turn out to be slow payers.
• Smaller projects under $5,000. The client does not need 30 days to process a payment for a half-day job. Shorter terms match the scope.
• Any situation where your cash flow depends on this specific payment. If you need the money to buy materials for your next job or cover rent, net 15 gives you a two-week buffer instead of a one-month gap.

Some freelancers start new clients on net 15 and extend to net 30 after three successful on-time payments. This builds trust while protecting cash flow early in the relationship.

Net 60 gives buyers 60 days from the invoice date to pay in full. These terms are often standard for larger companies or industries with long sales cycles or supply chain considerations that require extra time to generate revenue before paying suppliers.

The trade-off is straightforward: you wait twice as long to get paid. For a contractor billing $8,000 per project, net 60 means carrying that receivable for two months. If you run two or three projects on net 60 simultaneously, you could have $16,000 to $24,000 in outstanding invoices at any given time.

Before accepting net 60, ask two questions:

• Can your business absorb a 60-day gap between work and payment? If the answer is no, counter with net 30 or request a deposit.
• Is the client large enough that the extended terms come with reliable payment? Net 60 from a Fortune 500 company with a structured AP department is different from net 60 from a small business that is stretching its own cash flow.

Net 60 with an early payment discount (like 2/10 net 60, where the client takes 2% off for paying within 10 days) can split the difference. You may still get paid quickly if the client has the cash to capture the discount.

Payment terms only work when both sides honor them. A few things that help:

There is no single correct answer. The right payment term depends on three variables:

You can also mix approaches. A deposit of 30% to 50% upfront with the balance due on net 30 gives you working capital from day one while still offering the client a standard payment window on the remainder.

The goal is to match terms to your financial reality, not to default to net 30 because it sounds professional. Landscaping companies, for example, usually request payment within seven days. There is nothing unprofessional about shorter terms if your business requires faster cash turnover.