What Are Net 30 Payment Terms? And Should You Use Them?
Net 30 is one of the most common payment terms in business invoicing. But for freelancers and consultants, it might not be the right choice. Here is everything you need to know.
What Net 30 means
Net 30 means the full invoice amount is due within 30 calendar days of the invoice date. If you send an invoice on May 1, payment is due by May 31. "Net" simply means the total amount, not a discounted amount.
Common payment terms compared
Should freelancers use Net 30?
Honestly, for most freelancers, Net 30 is too long. Here is why.
When you deliver work and invoice on Net 30 terms, you are effectively giving the client a 30-day interest-free loan. You have done the work. They have the deliverables. But you are waiting a full month to get paid. If they are slow to pay, that becomes 45 or 60 days. That is a real cash flow problem.
Net 30 makes sense for large corporate clients who have formal accounts payable departments with fixed payment cycles. For most freelancers working with small businesses, coaches, or agencies, Net 7 or Net 14 is more than reasonable. And "due on receipt" with a payment link is even better, because it removes the deadline entirely in favour of immediate payment.
What to do if clients insist on Net 30
- ✓Require a 50% deposit upfront so you are not waiting for 100% of your fee
- ✓Add a late payment clause, typically 1.5-2% per month on overdue balances
- ✓Set up automatic reminders so you know immediately when day 30 passes
- ✓Price in the delay, if a client insists on Net 30, your rate should reflect the cash flow risk
Set your payment terms once, automate the rest
Becflow lets you set Net 7, Net 14, or Net 30 on every invoice, and sends reminders automatically when the due date passes.
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