Payment terms
Net 60
Net 60 means the full invoice amount is due within 60 days of the invoice date.
What Net 60 means
Net 60 is a payment term that gives your client 60 calendar days from the invoice date to pay the full balance. The "net" refers to the total amount owed, and 60 is the number of days in the payment window. As with most net terms, the clock starts on the invoice date unless you state otherwise.
Net 60 is most common with larger and enterprise buyers whose accounts payable departments run on fixed payment cycles. For a small vendor, agreeing to Net 60 is often the cost of doing business with a big client who will not negotiate shorter terms.
The cash-flow strain of Net 60
The risk with Net 60 is that you finance the client for two months. You may have already paid for materials, subcontractors, software, and your own time long before the money arrives. Stacking several Net 60 invoices can create a serious gap between when you spend and when you get paid.
Because Net 60 ties up your cash, you should price it in. Build the cost of waiting into your rate for clients on extended terms, or offer an early-payment discount such as 2/10 Net 60 so clients have a reason to pay sooner. You can also ask for a deposit up front, invoice in milestones, or use invoice factoring if the wait is unavoidable.
Before agreeing to Net 60, confirm you have enough working capital to cover two months of expenses, and make sure the client is reliable enough that the long wait is not also a collection risk.
Example: You send an invoice dated June 1, 2026 for 8,000 dollars with Net 60 terms. Counting 60 calendar days from June 1 lands the due date on July 31, 2026. You will not see that 8,000 dollars for two full months, so plan your expenses accordingly.
FAQs
Frequently asked questions
Why do big companies ask for Net 60?
Large buyers use long terms like Net 60 to manage their own cash flow and standardize payment cycles across many vendors. Holding cash longer improves their working capital, which is why enterprise accounts payable teams often insist on it.
Should I charge more for Net 60 terms?
Yes. When you wait 60 days you are effectively lending the client money, so it is reasonable to price that in. Many vendors quote a higher rate for extended terms or offer an early-payment discount as an incentive to pay sooner.
How can I get paid faster on a Net 60 invoice?
Offer an early-payment discount, request a deposit up front, bill in milestones, or send a polite reminder before the due date. If the gap is too large to carry, invoice factoring can advance most of the balance for a fee.
Is Net 60 common for freelancers?
It is less common than Net 15 or Net 30 and usually appears only with larger corporate clients. Many freelancers avoid Net 60 because the long wait strains cash flow.
Related terms
Net 30
Net 30 is a payment term that means the full invoice balance is due within 30 days of the invoice date.
Net 90
Net 90 means the full invoice amount is due within 90 days of the invoice date.
2/10 Net 30
2/10 Net 30 means the full amount is due in 30 days, but the client can take a 2 percent discount by paying within 10 days.
Put it into practice
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