What is Net 30?
Net 30 is a payment term meaning the full invoice amount is due within 30 calendar days of the invoice date. It is one of the most common payment terms used in business-to-business transactions.
Net 30 means the client must pay the full invoice amount within 30 calendar days of the invoice date. The "Net" refers to the total amount due after any deductions, and "30" is the number of days.
Common variations of Net payment terms:
- Net 7: Payment due within 7 days
- Net 14: Payment due within 14 days
- Net 30: Payment due within 30 days (most common)
- Net 60: Payment due within 60 days (common with larger companies)
- Due on receipt: Payment expected immediately
For freelancers, the payment term you choose directly affects your cash flow. Net 30 is standard, but consider:
- Shorter terms for new clients: Use Net 14 or Due on Receipt until trust is established
- Early payment discounts: Offer a small discount (e.g., 2% for payment within 10 days, written as "2/10 Net 30")
- Deposit requirements: Request 25-50% upfront for larger projects
- Milestone payments: Split payments across project phases
If a client consistently pays late on Net 30 terms, you are entitled to charge late payment interest under UK law. The Late Payment of Commercial Debts (Interest) Act 1998 gives you this right automatically, even without a contract clause.
Always state your payment terms clearly on every invoice. "Payment due within 30 days of invoice date" leaves no room for misinterpretation.
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Frequently Asked Questions
Does Net 30 mean 30 business days or calendar days?
Net 30 means 30 calendar days from the invoice date, not business days. If you invoice on 1 March, payment is due by 31 March regardless of weekends or bank holidays.
What should I do if a client does not pay within 30 days?
Send a polite payment reminder on day 31. Follow up a week later if needed. If the invoice remains unpaid, you can charge late payment interest (8% + Bank of England base rate) and a fixed compensation fee under the Late Payment of Commercial Debts Act.
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