Net 30 vs Net 60: Which Payment Terms Should You Use?

"Net 30" on an invoice means the full amount is due within 30 days of the invoice date. Net 60 gives the client 60 days, and Net 7 or Net 14 shorten the window. The terms look interchangeable, but the one you pick directly shapes your cash flow — and your leverage when payments slip.

What the terms actually mean

The clock starts on the invoice issue date, not the date the client opens the email. An invoice issued June 1 on Net 30 terms is due July 1. Some companies add qualifiers: "Net 30 EOM" means 30 days from the end of the month, and "2/10 Net 30" offers a 2% discount if the client pays within 10 days.

Why big companies push for Net 60

Longer terms let large companies hold onto cash and simplify batch payment runs. For them it is treasury management; for you it is an interest-free loan you are extending. A $10,000 invoice on Net 60 means you finance two months of that client’s cash flow — while still paying your own rent, software and subcontractors monthly.

Which should you choose?

• Freelancers and small agencies: default to Net 14. It is short enough to protect cash flow and long enough for any accounts process.
• New clients or one-off projects: take a deposit up front, then Net 7 or due-on-receipt for the balance.
• Enterprise clients: expect Net 30 as the floor. If procurement pushes Net 60, price it in (2–5% higher) or negotiate part-payment on delivery.
• Recurring retainers: invoice at the start of the month, due within 14 days — not after the work month ends.

Put the date, not just the term

Whatever term you use, print the explicit due date on the invoice. "Due 11 July 2026" is unambiguous; "Net 30" relies on the client doing the maths. Every invoice created with our generator computes and prints the due date automatically.