Getting paid

Net 30

Net 30 is a payment term that means the full invoice balance is due within 30 days of the invoice date.

How Net 30 works

When an invoice says "Net 30," the client has 30 calendar days from the invoice date to pay the full amount. The clock starts on the issue date unless you specify otherwise (some businesses start it from the delivery date or end of month).

Net 30 is common in business-to-business work because it gives clients time to process payments through their accounts-payable systems. The trade-off is slower cash flow for you.

Pros, cons, and alternatives

Net 30 can make you more attractive to larger clients who expect standard terms, but it also means waiting a month — or longer if the client pays late. To offset the wait, some businesses add an early-payment discount ("2/10 Net 30") or charge a late fee after day 30.

If cash flow is tight, consider shorter terms like Net 15 or Due on receipt, or require a deposit before starting work.

Example: An agency issues a $4,000 invoice dated June 1 with Net 30 terms. The client must pay the full $4,000 by July 1.

FAQs

Frequently asked questions

Does Net 30 mean 30 business days or calendar days?

Net 30 normally means 30 calendar days from the invoice date, not business days, unless the invoice states otherwise.

Can I charge a late fee after Net 30?

Yes, if your agreed terms include one. Many businesses apply a percentage-based late fee (commonly 1–2% per month) on balances unpaid after the due date.

Put it into practice

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