When you send an invoice, you can't just cross your fingers and hope to get paid tomorrow. You need to establish "Payment Terms."
If you look at the settings in our Invoice Maker, you'll see a field for the "Due Date." This date is determined by your Net terms. But what do they mean, and which one should you choose?
What Does "Net" Mean?
"Net" simply means the total amount of days the client has to pay you after receiving the invoice.
- Net 15: Payment due in 15 days.
- Net 30: Payment due in 30 days.
- Net 60: Payment due in 60 days.
The Danger of Net 60 and Net 90
Many large corporate clients will try to force you into a Net 60 or Net 90 agreement. They do this to keep cash in their own bank accounts longer, earning interest.
For a freelancer, Net 60 is dangerous. It means if you finish a project on June 1st, you won't see a dollar until August 1st. If the client is late, you might be waiting until September. This destroys your cash flow. Before you sign an agency agreement, run it through an AI Contract Scanner to ensure you aren't quietly agreeing to Net 90 terms.
What You Should Use: Net 15
As an independent contractor, you are not a bank. You should not be financing your client's business. Net 15 is the ideal standard for modern freelancers. It gives the client's accounting department two weeks to process the paperwork, but keeps your cash flow healthy.
How to Negotiate Faster Terms
If a corporate client says "Our standard policy is Net 60," you can reply with:
"As an independent contractor, my pricing is structured around Net 15 terms. I am happy to accommodate your Net 60 policy, but I will need to add a 10% financing surcharge to the project total to account for the delayed cash flow."
9 times out of 10, the client will magically find a way to approve you for Net 15 to avoid paying the extra 10%.
Frequently Asked Questions (FAQ)
Is "Due Upon Receipt" better than Net 15?
Not always. "Due Upon Receipt" sounds great, but it is ambiguous to corporate accounting departments. Without a hard calendar date, it often gets pushed to the bottom of their pile. Net 15 creates a strict deadline.
Can a client legally change my Net terms after I send the invoice?
No. Payment terms must be agreed upon in your initial contract. If they try to change the rules after the work is done, you have the right to charge late fees based on the original agreement.
How do I calculate the exact due date?
Start counting from the day you send the invoice. If you send the invoice on October 1st with Net 15 terms, the due date is October 16th.