What does Net 30 mean on an invoice?
Net 30 means the client must pay the full invoice amount within 30 calendar days of the invoice date. If you issue an invoice on May 1, the payment due date under Net 30 terms is May 31. 'Net' refers to the net amount due (no discounts), and '30' is the number of days in the payment window.
Is Net 30 the same as 30 days from delivery or 30 days from invoice date?
Net 30 is measured from the invoice date, not from delivery or receipt of goods. This distinction matters: if your invoice date is May 1 but the client doesn't open the email until May 10, the due date is still May 31 under standard Net 30 terms. Some contracts specify 'Net 30 from receipt' or 'Net 30 from delivery' — which changes the clock. Always clarify the start date in your contract if there could be ambiguity.
What happens if a client doesn't pay within Net 30?
Once the 30-day window passes without payment, the invoice becomes overdue. You can apply late fees per your stated policy (typically 1.5% per month on the outstanding balance), send a formal overdue notice, pause work if the project is ongoing, and ultimately escalate to collections or small claims court if the invoice remains unpaid after 60–90 days of follow-up.
What is the difference between Net 30 and 2/10 Net 30?
'2/10 Net 30' is a variation that adds an early-pay discount offer: the client receives a 2% discount if they pay within 10 days of the invoice date; otherwise, the full amount is due within 30 days. It is both a Net 30 payment window and an incentive for faster payment. '2' is the discount percentage, '10' is the discount window in days, and 'Net 30' is the full payment deadline.
Is Net 30 good for freelancers?
Net 30 is appropriate for established corporate clients with formal AP departments but is often too slow for most freelancers' cash flow needs. For projects under $10,000, Net 7 or Net 15 is better. Net 30 works well when: the client is a large corporation that won't budge on payment timing, the invoice is large enough that the wait is worth the relationship, and you have enough working capital to bridge the 30-day gap.
How do I get invoices paid faster under Net 30 terms?
Five strategies that accelerate Net 30 payments: (1) Include a direct Stripe or PayPal payment link — clients who can pay with one click pay 40% faster; (2) Send the invoice the same day work is completed, not at month-end; (3) Add a 2% early-pay discount offer for payment within 10 days; (4) Send automated reminders at Day 20, Day 25, and Day 30; (5) Require a 50% deposit upfront so only the final 50% is on Net 30 terms.