Net 30 Payment Terms Explained (With Examples)
You’ve probably seen “Net 30” on invoices and contracts. Maybe you’ve used it yourself without thinking too hard about it. Here’s exactly what it means, when to use it, and when you should pick something else.
What “Net 30” means
Net 30 means payment is due 30 calendar days from the invoice date. Invoice dated January 10? Payment due February 9. That’s it. “Net” just means the total amount due after any deductions.
Common payment terms
Net 30 isn’t your only option. Here’s how the most common terms compare:
How to write payment terms on your invoice
Be explicit. Don’t just write “Net 30” and hope the client knows what it means. Here are examples of clear payment terms you can put in your invoice’s notes or terms section:
Example 1 (Net 30):
“Payment due within 30 days of invoice date. A late fee of 1.5% per month will apply to overdue balances.”
Example 2 (Net 15):
“Please remit payment within 15 days. Bank transfer details below.”
Example 3 (2/10 Net 30):
“2% discount if paid within 10 days. Full amount due within 30 days of invoice date.”
Example 4 (Due on receipt):
“Payment is due upon receipt of this invoice. Please pay via bank transfer or PayPal.”
Net 30 vs Net 15 — which should you use?
If you’re a freelancer or small business, Net 15 is almost always better. Net 30 was designed for large B2B transactions where companies need time to process invoices through accounting departments. If your client is a single person or small team, they don’t need 30 days.
Use Net 30 when working with larger companies that explicitly require it, or when you’ve negotiated it as part of a contract. Use Net 15 or “Due on receipt” for everything else.
Net 30 vs Net 60
Net 60 is a long time to wait. You’ll mostly see it with enterprise clients and government agencies. If a client asks for Net 60, consider whether your cash flow can handle it. If not, negotiate. Offer a small discount for Net 30 instead, or require a deposit upfront.
When does the clock start?
The payment term countdown starts from the invoice date, not the delivery date or the date the client opens the email. This is why it’s important to invoice immediately after delivering your work.
What if they don’t pay on time?
First, don’t panic. Late payments are frustratingly common. Have a process: our guide to following up on unpaid invoices walks through exactly what to say at each stage.
The best way to enforce payment terms? Put them on a professional invoice that leaves nothing to interpretation. Our invoice generator includes a payment terms field where you can add any of the examples above. Try our consultant or freelancer templates to get started.
Frequently Asked Questions
Does Net 30 mean 30 calendar days or 30 business days?
Net 30 means 30 calendar days from the invoice date, not business days. If you invoice on March 1, payment is due by March 31 — weekends and holidays included.
What does 2/10 Net 30 mean?
2/10 Net 30 means the buyer gets a 2% discount if they pay within 10 days. Otherwise, the full amount is due in 30 days. It's a common incentive to encourage faster payment.