What Does Net 30 Mean in a Contract?
"Net 30" means the full invoice amount is due 30 days after the invoice date. Net 60 and net 90 work the same way with longer waits. The number describes when payment is due — not when it arrives; late payment is a separate problem the contract also has to handle.
Why it matters
Payment terms decide who finances the work between delivery and payment. For a solo professional or small business, net 60/90 means carrying costs for two or three months per invoice — effectively an interest-free loan to the client. Combined with no deposit and no late-payment interest, the payment clause can quietly make you the project's lender.
What to watch for
- Net 60/90 as the default, especially from larger counterparties.
- The clock's start point: "net 30 from invoice approval" is slower than "net 30 from invoice date" — and approval may have no deadline (see deemed acceptance).
- No deposit on project work.
- No late-payment interest, which makes the due date advisory in practice.
A realistic example
A contractor agrees to net 30, invoices on delivery, and is paid on day 55. Because the contract named no interest for late payment and no deposit, the only enforcement tool available is chasing — and the next project with the same client starts on the same terms.
What to ask for
- Net 30 or shorter, running from the invoice date.
- A deposit for project work — 25–50% up front is standard.
- Late-payment interest (for example, 1.5% per month on overdue amounts) so the due date has teeth.
Related terms: deemed acceptance · auto-renewal clause Related guide: How to get paid as a freelancer
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Not legal advice. This is an educational definition of a common contract term. Details vary by jurisdiction — this page explains common U.S. usage. For high-stakes agreements, have a lawyer review the final version.