The client says "we pay Net 30," you nod, and on day 30 nothing has arrived. Thirty days from when, exactly?
This guide explains Net 30 payment terms and the other invoice payment terms you'll meet: Net 7 to Net 90, due on receipt, EOM, 2/10 net 30, deposits and milestones. You'll learn how to count the due date, which terms suit freelancers, what the law says in the US, UK and EU, and wording you can paste onto your next invoice.
This article is general information, not legal advice. Rules depend on your location, your client's location and your contract.
Key takeaways
Net 30 means payment is due 30 calendar days after the invoice date, unless your contract or invoice says the clock starts somewhere else.
Always print the actual due date next to the term ("Net 30, due November 6, 2026").
For most freelancers, shorter terms (due on receipt, Net 7 or Net 15) plus a deposit protect cash flow better than Net 30.
2/10 net 30 gives a 2% discount for paying within 10 days. It sounds small but costs you roughly 37% a year, so use it sparingly.
The UK and EU limit very long business payment terms. New York, California and Illinois default to payment within 30 days of finishing the work when the contract sets no date.
Net 30 meaning: how the due date is counted
"Net" is the total amount owed after any discounts. "30" is the number of days the client has to pay it. So Net 30 means the full invoice total is due within 30 days.
Two details trip people up:
The clock usually starts on the invoice date. That's the standard convention. Some contracts count from receipt of the invoice, delivery, or approval of the work instead. If yours does, write it on the invoice.
It's calendar days, not business days. Weekends and holidays count. If you mean business days, spell it out.
Here's how it works with an invoice dated October 7, 2026:
Term | Due date |
|---|---|
Due on receipt | October 7, 2026 (in practice, as soon as the client sees it) |
Net 7 | October 14, 2026 |
Net 15 | October 22, 2026 |
Net 30 | November 6, 2026 |
Net 30 EOM | November 30, 2026 |
Net 60 | December 6, 2026 |
Net 90 | January 5, 2027 |
To avoid a "we thought it was due on the 30th" conversation, put the calendar date on the invoice, not just the term. The free invoice generator has room for both.
Common invoice payment terms compared
Term | What it means | Who typically uses it | Good for freelancers? |
|---|---|---|---|
Due on receipt | Pay as soon as the invoice arrives | Individuals, small jobs, one-off clients | Yes, especially for small or new clients |
Net 7 | Due 7 days after the invoice date | Freelancers, small businesses | Yes |
Net 15 | Due 15 days after the invoice date | Freelancers, agencies | Yes, a solid default |
Net 30 | Due 30 days after the invoice date | Most US businesses | Fine for established business clients |
Net 30 EOM | Due 30 days after the end of the invoice month | Companies with monthly payment runs | Only if the client insists |
Net 60 / Net 90 | Due 60 or 90 days after the invoice date | Large corporations, enterprise procurement | Rarely, and only with a deposit |
2/10 net 30 | 2% off if paid within 10 days, otherwise due in 30 | Wholesale, supply chains | Usually not worth the discount |
Deposit / upfront | Part or all paid before work starts | Freelancers, creative and project work | Yes, highly recommended |
Milestone | Paid in stages as parts of the project are delivered | Longer projects | Yes, for anything over a few weeks |
Net 7, Net 15, Net 60 and Net 90
These work like Net 30 with a different number of days. Net 7 and Net 15 are popular with freelancers because the money arrives before the next round of bills. Net 60 and Net 90 are common in large companies that batch payments, and they're hard on anyone without a cash cushion: invoice on October 7 with Net 90 and you won't see the money until January.
Due on receipt
Due on receipt means the client should pay as soon as they get the invoice. It's the shortest term and common with individuals and small clients. Some people read "on receipt" loosely, so add a date ("Due on receipt, by October 10, 2026").
EOM (end of month)
EOM ties the due date to the end of the month. "Net 30 EOM" means 30 days after the last day of the invoice month, so an invoice dated October 13 is due November 30. It fits clients' monthly payment runs, but if you invoice early in the month it stretches payment to nearly two months.
Upfront, deposit and milestone terms
These aren't "Net" terms, but they're often the most useful for freelancers:
100% upfront: for small, fixed-price jobs and brand-new clients.
Deposit: a share of the total (often a third or a half) before work starts, the rest on delivery. It covers your time if the project stalls.
Milestones: each stage is invoiced when it's delivered, for example 30% at kickoff, 40% after the first draft, 30% at final delivery.
You can combine these with Net terms: "50% deposit due on receipt; balance due Net 15 from final delivery."
2/10 net 30: early payment discounts and the math
2/10 net 30 means the client can take 2% off if they pay within 10 days of the invoice date. Otherwise, the full amount is due in 30 days.
Example: a $2,000 invoice dated October 7, 2026.
Paid by October 17: the client pays $1,960 (2% of $2,000 is $40).
Paid by November 6: the client pays the full $2,000.
That $40 looks small, but it only buys you 20 days. Finance textbooks annualize it like this:
Annual cost = discount ÷ (100 − discount) × 360 ÷ (full days − discount days)
For 2/10 net 30: 2 ÷ 98 × 360 ÷ 20 = about 36.7% a year (just over 37% on a 365-day year). That's why large buyers love these terms, and why they're an expensive way for a freelancer to speed up payment. Some clients also take the discount and pay late anyway. A shorter term or a deposit usually gets you the same result without giving up 2%.
Other variations work the same way: "1/10 net 30" is 1% off if paid within 10 days.
Which payment terms suit freelancers (and why)
A few patterns hold for most solo businesses:
New or small clients: due on receipt, or a deposit. You have no payment history with them, and small invoices are easy to pay right away.
Ongoing work with businesses: Net 15 or Net 30. Many companies pay once or twice a month, so Net 7 may just mean waiting for the next run. Ask about their payment cycle and fit your term to it.
Projects longer than a few weeks: deposit plus milestones. Don't finance a two-month project out of your own pocket.
Retainers: in advance, at the start of each month.
Whatever you choose, agree on it before you start work, put it in your proposal or contract, and repeat it on every invoice. Terms that first appear on the invoice are easy for a client to push back on. For more on setting this up, see our guide to how to invoice as a freelancer and these invoicing tips.
Legal limits on payment terms
Payment terms are mostly whatever you and the client agree, but some places set defaults (when nothing was agreed) or limits.
United States
There's no general federal rule on payment terms between private businesses. A few states have freelancer-specific laws that set a default:
New York (Freelance Isn't Free Act, since August 28, 2024): for freelance work worth $800 or more, the client must pay by the date in the contract or, if none is set, within 30 days of completion. Once you've started work, the client can't make on-time payment conditional on you accepting less money. The written contract must state the payment date or how it will be set.
California (Freelance Worker Protection Act, since January 1, 2025): for professional services worth $250 or more, the same pattern applies: pay by the contract date, or within 30 days after the work is completed if no date is set.
Illinois (Freelance Worker Protection Act, since July 1, 2024): for work worth $500 or more, if the contract sets no payment date, payment is due no later than 30 days after completion.
These laws count from completion of the work, not the invoice date, and let the contract set a different date, so clear written terms still matter most. Elsewhere, check your state's rules.
United Kingdom
Under the UK's late payment rules, if you and a business client didn't agree a payment date, the payment is late 30 days after the client gets the invoice or you deliver the work, whichever is later. Agreed B2B terms are usually up to 60 days; longer is allowed only if it's fair to both sides. Public authorities must pay within 30 days.
Once a payment is late, you can claim statutory interest of 8% plus the Bank of England base rate, plus a fixed recovery charge of £40, £70 or £100 depending on the size of the debt (unless your contract sets a different interest rate).
The government introduced a bill in May 2026, now called the Commercial Payments Bill, that would cap payment terms at 60 days for large companies paying smaller suppliers and make late payment interest mandatory. As of October 2026, it's still going through Parliament and not yet law.
European Union
The EU Late Payment Directive sets the framework for business payments across member states. Businesses must pay within 60 days unless something else is expressly agreed and isn't grossly unfair to the supplier. Public authorities must pay within 30 days (60 in exceptional cases). Late payers owe interest of at least 8 percentage points above the ECB reference rate, plus a minimum of €40 in compensation. Each country implements the details in its own law.
If a client pays late in any of these places, the late fee calculator helps you work out the amount, and our guide to charging a late fee on an invoice covers the wording. If the late invoice is yours rather than theirs, see late invoicing rules.
How to write payment terms on an invoice
Good terms are short and impossible to misread. Include the term, the actual due date, how to pay, and any late fee your contract allows. Put them near the total. Wording you can copy:
Due on receipt
Payment is due on receipt. Please pay by October 10, 2026.
Net 15
Payment terms: Net 15. Please pay the total of $1,200.00 by October 22, 2026.
Net 30
Payment terms: Net 30 from the invoice date. Amount due: $2,000.00 by November 6, 2026.
Net 30 with a late fee
Payment terms: Net 30. Payment is due by November 6, 2026. As agreed in our contract, balances unpaid after the due date accrue a late fee of 1.5% per month.
2/10 net 30
Terms: 2/10 net 30. Pay $1,960.00 by October 17, 2026 (2% early payment discount), or the full $2,000.00 by November 6, 2026.
Deposit and balance
50% deposit ($1,500.00) due on receipt to schedule the project. The remaining $1,500.00 is due Net 15 from final delivery.
The freelance invoice template has a spot for terms and a due date, so you can drop any of these in.
In Onigiri, each invoice shows its status (Sent, Overdue or Paid), so you can see at a glance which ones have passed their due date. If you accept card payments, the money goes straight to your own Stripe account and the invoice is marked Paid automatically when the client pays.
What to do when a client asks for Net 60 or Net 90
Large companies often present 60 or 90 days as non-negotiable. There's often room to move. Before you sign:
Ask. "My standard terms are Net 15. Do you have a shorter cycle or a small-supplier schedule?" Some companies do and don't advertise it.
Ask for a deposit. "Net 60 works for the balance, with a 30% deposit before we start."
Bill in smaller pieces. Monthly or milestone invoices start the clock on part of the work sooner.
Price it in. Waiting months for money has a real cost, so quoting higher for long terms is reasonable.
Check local rules if you're in New York, California or Illinois, or working with UK or EU businesses.
Get the process right. Ask who approves invoices and what PO number they need. A rejected invoice restarts the clock.
If you accept long terms, keep a cash buffer, track the due date, and send a polite reminder a few days before it. Our guide on how to remind someone to pay you has templates for every stage.
Getting paid on the terms you set
Agree on terms before work starts, print the due date on every invoice, and give clients a fast way to pay. Onigiri's Free plan lets you send 3 invoices a month as an email, a shareable link or a PDF, with no credit card required. Create a free account and send your next invoice with terms the client can't misread.
