Net 30 vs Net 60 Payment Terms: What Freelancers Need to Know

You finished the project, sent the invoice, and now you wait. But how long should you actually be waiting? If your invoice says "Net 30," you're giving the client a full month. If it says "Net 60," you're giving them two. And if you're a freelancer who needs to pay rent, buy groceries, and keep the lights on, the difference between 30 and 60 days can be the difference between comfort and crisis.

Payment terms are one of the most overlooked parts of freelancing—until the first time you're left waiting eight weeks for money you earned two months ago. This guide breaks down exactly what Net 30 and Net 60 mean, when each makes sense, and how to negotiate terms that actually work for your cash flow.

What Are Payment Terms?

Payment terms are the conditions under which you expect to be paid for your work. They appear on your invoice and (ideally) in your contract, and they define:

• When payment is due (the deadline)
• How the client should pay (bank transfer, PayPal, etc.)
• What happens if they pay late (interest, penalties)

The "Net" in payment terms simply means the total amount due. Net 30 means the full invoice amount is payable within 30 calendar days of the invoice date. That's it. No mystery, no hidden meaning.

The number after "Net" is the window in days. The higher the number, the longer you wait. And in freelancing, waiting costs money.

Common Payment Terms Breakdown

Before diving into Net 30 vs Net 60, here's the full spectrum of invoice payment terms you'll encounter:

The further right you go on this spectrum, the more your cash flow suffers. Let's look at the two most common—and most debated—options.

Net 30: The Deep Dive

Net 30 is the most widely used payment term in business. It's the default in many industries, which is why clients often assume it's standard. For freelancers, it's a mixed bag.

How Net 30 Works in Practice

You send an invoice on 1 March. The client has until 31 March to pay. In theory, this gives their accounts department time to process the payment through their internal systems. In practice, it means you did work in February and might not see the money until April—especially if they pay on day 30 rather than day 1.

Add in the time between finishing the work and sending the invoice (even a few days), and Net 30 easily becomes 35-40 days from project completion to payment. If they're a day or two late on top of that? You're looking at six weeks.

When Net 30 Makes Sense

Net 30 is reasonable when:

• You're working with a medium or large company that has genuine payment processing timelines
• The client has a track record of paying on time (or early)
• The project value is high enough that the 30-day wait doesn't threaten your cash flow
• You've already received a substantial deposit upfront
• You have other income covering your expenses during the wait

If you're offering Net 30, make sure your cash flow management is solid enough to absorb the wait. Three months of reserves is the minimum safety net.

Net 60: The Deep Dive

Net 60 gives the client 60 calendar days to pay. That's two full months. For a freelancer, this is a long time to carry unpaid work on your books.

How Net 60 Works in Practice

You send an invoice on 1 March. Payment isn't due until 30 April. If the client takes the full window—and many do—you won't see the money until May. Factor in any delays, and you could be waiting three months from the date you finished the work.

During those three months, you still need to pay your rent, your software subscriptions, your tax bill, and yourself. The client is essentially getting an interest-free loan from you—funded by your savings or your credit card.

When Net 60 Might Be Acceptable

Net 60 is only worth considering when:

• The contract value is substantial (£5,000+) and the relationship is ongoing
• You've negotiated a large upfront deposit (50%+) to offset the wait
• The client is a blue-chip company or government body where payment is virtually guaranteed
• You have sufficient cash reserves to cover two months of expenses without this payment
• You've priced the longer terms into your rate (charging more to compensate for the wait)

If none of these apply, Net 60 is a bad deal. Full stop.

Why Shorter Is Usually Better for Freelancers

Here's the uncomfortable truth: payment terms were designed by and for large businesses. Corporations use Net 30, 60, and 90 because they optimise their own cash flow at the expense of their suppliers. They hold onto money as long as possible, earning interest on it while you wait.

As a freelancer, you are the supplier. And unlike a large supplier with thousands of customers, you're probably dependent on a handful of clients. One late payment on Net 60 terms can destabilise your entire month.

Consider the maths:

A freelancer billing £4,000/month with Net 30 terms has roughly £4,000 of unpaid invoices outstanding at any time. Switch to Net 60, and that jumps to £8,000. That's £8,000 of your money sitting in someone else's bank account, earning them interest instead of you.

Shorter payment terms don't just improve cash flow—they also:

• Reduce default risk: The longer a payment is outstanding, the less likely it is to be paid
• Simplify chasing: Following up on a 7-day-overdue invoice feels natural; chasing a 60-day-overdue one feels confrontational
• Signal professionalism: Confident freelancers set clear, firm terms. Desperate ones accept whatever the client offers
• Improve your negotiating position: You're harder to push around when you're not waiting on a cheque

How to Negotiate Better Payment Terms

The best time to negotiate payment terms is before the project starts—ideally during the proposal or contract stage. Here's how to get shorter terms without losing the deal:

Lead with Your Terms

State your terms early and confidently. "My standard payment terms are Net 14 with a 40% deposit on signing." When you present this as your standard (not a request), clients accept it far more often than you'd expect. Most people don't negotiate what sounds like a settled policy.

Offer an Early Payment Discount

The classic "2/10 Net 30" approach: offer a 2% discount for payment within 10 days, with the full amount due in 30 days. This costs you 2% but can get you paid three weeks faster. On a £3,000 invoice, that's £60 for three weeks of improved cash flow—a trade most freelancers should take.

Negotiate the Deposit, Not Just the Terms

If a client insists on Net 30 or Net 60, counter with a larger upfront deposit. "I can work with Net 30 on the final invoice if we do 50% upfront." This way, you've already received half the money before the long payment window even starts. The effective wait drops dramatically.

Use Milestone Billing for Longer Projects

For projects over four weeks, break the payment into stages: 40% on signing, 30% at midpoint, 30% on delivery. Each milestone invoice has its own payment terms. This means money flows throughout the project rather than arriving in one lump at the end.

Price in the Risk

If a client absolutely requires Net 60 and the work is worth doing, raise your rate by 5-10% to compensate. You're providing 60-day credit—that has a cost. Build it into the price. "My rate for Net 14 terms is £X. For Net 60, it's £Y." This reframes long payment terms as a premium service, not a default.

Adding Late Payment Incentives and Penalties

Your payment terms should include consequences for late payment. In the UK, you have strong legal backing for this:

Statutory Interest (Your Legal Right)

Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge interest on late B2B invoices at 8% plus the Bank of England base rate per year. You don't need to include this in your contract—it's the law. But mentioning it on your invoice and in your terms makes clients take deadlines more seriously.

Use our late payment interest calculator to work out exactly what you're owed on overdue invoices.

Fixed Compensation

The same Act entitles you to fixed compensation on top of interest:

• £40 for debts under £1,000
• £70 for debts between £1,000 and £9,999
• £100 for debts of £10,000 or more

Contractual Late Fees

You can also include your own late payment clause in your contract. A common approach: "Invoices not paid within the agreed terms will incur a late payment fee of [X]% per month on the outstanding balance." Keep the rate reasonable—courts may disregard penalties that are disproportionate.

Early Payment Discounts

The carrot often works better than the stick. "2% discount for payment within 7 days" gets more invoices paid early than threatening interest on late ones. Use both: reward speed, penalise delay.

Payment Terms in Your Contract: Sample Clause

Here's a contract-ready payment terms clause you can adapt:

Adjust the numbers to suit your situation. The key elements are: deposit requirement, clear payment window, explicit late payment consequences, and a right to pause work for non-payment.

Quick Reference: Choosing Your Payment Terms

Not sure which terms to use? Here's a decision guide:

The Bottom Line

Payment terms aren't just administrative details—they're the foundation of your cash flow. Get them right, and money flows predictably. Get them wrong, and you're constantly chasing, stressing, and hoping.

Net 30 is acceptable when you have strong cash reserves and the client pays reliably. Net 60 is a cash flow trap for most freelancers and should only be accepted with significant upfront deposits and premium pricing.

But neither is ideal. The freelancers with the healthiest businesses default to Net 14 or shorter, collect deposits before starting work, use milestone billing for longer projects, and include clear consequences for late payment.

Your payment terms are not a suggestion—they're a business decision. Set them deliberately, communicate them clearly, and enforce them consistently. Your bank balance will thank you.

Read our complete guide to freelance invoice best practices for more ways to get paid faster and more reliably.