Net 30 payment terms explained

How to calculate a Net 30 due date

Count 30 calendar days from the invoice date (not from delivery, unless your contract says so). An invoice dated 15 October with Net 30 is due on 14 November. Weekends and public holidays count as days; if the due date falls on one, many clients pay the next working day.

Always print the actual due date on the invoice as well as the terms. “Due: 14 November 2026” leaves no room for interpretation. In BillOak, typing “Net 30” in Payment Terms fills in the due date automatically.

Other common payment terms

• Due on receipt: payment is expected immediately
• Net 7, Net 15: shorter terms, common for freelancers and small jobs
• Net 60, Net 90: longer terms, often demanded by large companies
• EOM (end of month): due at the end of the month the invoice is issued
• Net 30 EOM: due 30 days after the end of the invoice month
• 2/10 Net 30: a 2% discount if paid within 10 days, otherwise the full amount in 30 days
• CIA / CWO: cash in advance or cash with order, paid before work starts

Is Net 30 right for you?

Net 30 is the most common business-to-business term because it gives the client one monthly payment cycle. For a small business or freelancer, though, 30 days is a long time to wait. Shorter terms such as Net 14, a deposit upfront, or staged payments for long projects can protect your cash flow.

Agree payment terms before you start work and write them into your quote or contract. The invoice should repeat what was agreed, not introduce new terms.

What the law says about payment terms

Some places set limits. In the European Union, the Late Payment Directive generally caps business-to-business terms at 60 days unless the parties expressly agree otherwise and it isn’t grossly unfair, and public authorities must usually pay within 30 days. It also gives suppliers a right to interest and a fixed €40 compensation for late payment.

In the UK, the Late Payment of Commercial Debts (Interest) Act lets businesses claim interest at 8% above the Bank of England base rate plus fixed compensation on late B2B invoices. In the United States, late payment is mostly governed by your contract and state law. Check the rules where you and your client are based.

Getting paid on time

• Send the invoice as soon as the work is delivered
• Show the exact due date, not just “Net 30”
• Make paying easy: full bank details or a payment link
• Send a friendly reminder a few days before the due date
• Follow up promptly once the due date has passed

How to write payment terms on an invoice

Spell out both the terms and what happens if they aren’t met. Some examples of clear wording:

Payment terms: Net 30. Payment due by 14 November 2026. Payment terms: 2/10 Net 30. Deduct 2% if paid by 25 October 2026; otherwise the full amount is due by 14 November 2026. Payment is due within 14 days of the invoice date. Late payments may incur interest as set out in our terms of business.

Example: one invoice, different terms

For an invoice dated 15 October 2026, here is when payment falls due under common terms:

Due on receipt 15 October 2026 Net 15 30 October 2026 Net 30 14 November 2026 Net 60 14 December 2026 EOM 31 October 2026 Net 30 EOM 30 November 2026 2/10 Net 30 2% off until 25 October, full amount by 14 November

Why large clients ask for longer terms

Big companies often pay suppliers in batch runs once or twice a month and route invoices through several approvals, so Net 45, 60 or 90 is common in their contracts. Longer terms help their cash flow at the expense of yours.

If you have to accept long terms, price them in, ask for a deposit or milestone payments, and make sure your invoice exactly matches their requirements (PO number, the right entity name, the right email address) so it isn’t rejected and the clock doesn’t restart.