Net Terms (Net 15, Net 30, Net 60)

Net terms define the payment window on an invoice. "Net 30" means the client has 30 calendar days from the invoice date to pay. "Net 15" gives them 15 days. "Due on Receipt" means payment is expected immediately. The term appears on your invoice, usually near the total or in a dedicated payment terms section.

For freelancers, shorter net terms are almost always better. Net 15 gets you paid roughly two weeks faster than Net 30, which directly improves cash flow. Corporate clients will often default to Net 30 or Net 60 — push back if you can. Many will accept Net 15 if you ask; they just default to longer terms because nobody challenged it.

Late payment fees tied to net terms add enforcement. A common structure: "Net 15. Invoices unpaid after 15 days accrue a 1.5% monthly late fee." Include this in your contract and on every invoice. Even if you never enforce it, the presence of the clause motivates faster payment.

Some freelancers offer early payment discounts: "2/10 Net 30" means the client gets a 2% discount if they pay within 10 days, otherwise the full amount is due in 30 days. This works well with larger invoices where 2% is meaningful to the client.

Choose your net terms based on client type. Small businesses and startups: Net 15 or Due on Receipt. Mid-market companies: Net 15 to Net 30. Enterprise clients: Net 30 to Net 45 (you may not have a choice). Government contracts: expect Net 60 to Net 90. Plan your cash flow accordingly and consider automated invoicing to stay on top of billing cycles.