Net 30 Payment Terms
Also known as: 30-day terms · net thirty
Definition
Net 30 means the client must pay the full invoice amount within 30 calendar days of the invoice date. It is the most common payment term for B2B transactions and large corporate clients.
Detailed Explanation
Net 30 gives clients a full month to process payment — standard in corporate accounts payable departments. For freelancers, this means you complete work on Day 1, invoice on Day 1, and may not receive payment until Day 30. Key considerations: Net 30 improves your cash flow forecasting (you know exactly when payment is due), but ties up your earnings for a month. Alternatives for freelancers: Net 15 (faster, reasonable for ongoing clients), Due on Receipt (fastest, best for new clients or small projects), 50% upfront + 50% Net 30 (reduces risk on large projects). Late payment penalties: you can legally charge 1-1.5% per month on overdue invoices if stated in your terms. AI bookkeeping tools automatically track due dates and flag approaching and overdue Net 30 invoices.
Freelancer Example
A freelance developer invoices a corporate client $5,000 on March 1 with Net 30 terms. Payment is due March 31. The client's AP department processes the invoice and the developer receives payment on March 28 — within terms.