Net 30 means payment is due 30 days after the invoice date. Not 30 business days. Not 30 days after the client received it. Thirty calendar days from the date printed at the top of the invoice.
The word "Net" comes from old commercial usage: it's short for "net of any settlement discount," meaning the full amount is due. The number after it is the count of days. So:
- Net 7 — due 7 days from invoice date
- Net 14 — due 14 days
- Net 21 — due 21 days (rarer, but used)
- Net 30 — due 30 days (the most common)
- Net 45 — due 45 days
- Net 60 — due 60 days (common with large enterprises)
- Net 90 — due 90 days (avoid if you can — kills cash flow)
When to use each
Due on receipt is the right term for one-off services with new clients, small amounts, or when you've been burned before. Pair it with a 50% deposit and you're largely insulated from late-payment risk.
Net 7 or Net 14 works for recurring work with trusted clients. Most freelance retainers settle into this rhythm because it keeps cash flow predictable for both sides.
Net 30 is the unofficial standard in much of B2B. Larger companies run accounts payable on a roughly monthly cycle, so they prefer Net 30 because it lines up with their process. If you're negotiating with a corporate client, this is what they'll counter-offer.
Net 60 and Net 90 are used by very large companies whose internal systems make faster payment genuinely difficult. Walmart, big telcos, government departments. You generally can't fight it, but you can offset it by invoicing as soon as work is done and chasing politely on day 31.
EOM and similar variants
Sometimes you'll see Net 30 EOM — "end of month plus 30 days." That means an invoice issued May 5 isn't due until June 30, not June 4. It's a hidden 25-day extension. Watch out for it in contracts and counter-propose plain Net 30 if you can.
Early-payment discounts
You can encourage faster payment with an early-payment discount, often written as 2/10 Net 30 — meaning 2% off if paid within 10 days, otherwise full amount due in 30. For freelancers, 2% off on a $4,000 invoice ($80) for getting paid 20 days earlier is usually worth it. Bigger businesses do this routinely to smooth cash flow.
Late fees
If your client signs a contract that lists a late fee, you can apply it on overdue invoices. Common in freelance contracts: 1.5% per month on outstanding balances. The fee isn't a moneymaker — it's a signalling device that says "this is a real obligation." Most clients pay before the fee kicks in.
Always show the actual date
Whatever term you choose, don't write "Net 30" alone on the invoice. Calculate the actual due date and print it. A client's AP system needs an absolute date — "Net 30" is just the rule, not the answer. The generator does this math automatically: pick a payment term and the due date updates.