Net 30, Net 60, Net 90: Payment Terms Freelancers Should Avoid

Payment terms are not just accounting details. They are risk allocation.

If a contract says net 60 or net 90, it means you may be financing the project for two to three months.

What Net Terms Mean

• Net 30: payment is due 30 days after invoice
• Net 60: due 60 days after invoice
• Net 90: due 90 days after invoice

Why Net 60 and Net 90 Hurt

Even if the client eventually pays, you carry the cost of: - your time - subcontractors - tools and subscriptions - taxes

Better Structures (That Clients Accept)

• Deposit upfront (25% to 50%).
• Milestones (paid at clear checkpoints).
• Pay on receipt for smaller engagements.

Add These Two Clauses

1. Late fee

A modest late fee (for example, 1% to 1.5% per month) changes incentives.

2. Pause work for non-payment

If the invoice is late, you can pause work without being in breach.

Quick Answers (AEO)

Is net 30 normal for freelancing?

It is common for larger companies, but you can still negotiate deposits and milestones.

What is a reasonable deposit?

Many freelancers use 50% upfront for new clients.

If you want to see whether your contract gives you real leverage to get paid, paste the payment section into Clauze and Clauze reads the practical outcome.