How invoice payment terms actually work
Payment terms — Net 7, Net 14, Net 30, Net 60, EOM, "due on receipt" — define when a client is contractually obligated to pay. The number after "Net" is the number of calendar days from the invoice date until payment is due. "Net 30" means 30 calendar days; "Net 60" means 60 calendar days. There is no business-day adjustment baked into the term — Saturday counts as a day.
EOM ("end of month") and EOM+30 are different beasts: the due date is anchored to the last day of the invoice month, not 30 days after the invoice date. An invoice issued May 5 with EOM+30 terms is due June 30 — that's 56 days, not 30. Common in EU bookkeeping and French accounting, less so elsewhere. The calculator above handles both correctly.
- Net 7 / 14 / 30 / 60 / 90: calendar days from issue date. The N is literally the day count.
- EOM: due on the last day of the invoice month. Bookkeeping convenience, not a kindness.
- EOM+30: due 30 days after the last day of the invoice month. Common in EU contracts.
- "Due on receipt": payment expected immediately. Reasonable for retainers, deposits, retainers — not for general work.
Which payment term to use, by client type
The right payment term is a balance between cashflow needs and client expectations. Asking for Net 7 from an enterprise client will be ignored or pushed back; offering Net 60 to a freelance client lets them sit on the cash for two months. Match the term to the client.
For solo freelancers and small agencies, Net 14 is the sweet spot for new client engagements: short enough to keep cashflow predictable, generous enough that no one pushes back. Net 30 is the universal B2B default for ongoing relationships. Net 60 and beyond should require a deposit on signing — never extend long terms without front-loading some cash.
- New freelance client: Net 14 with 50% deposit on signing. Short cycle, low risk.
- Established freelance client: Net 30. Industry default. Most clients pay on time.
- Mid-market enterprise: Net 30 or Net 45. Their AP team typically requires 2-3 weeks of paperwork.
- Large enterprise / govt / healthcare: Net 60-90 with deposit, or factoring. Push back hard if smaller terms aren't accepted.
- Retainer / subscription: Due on receipt or Net 7. The work is delivered upfront; you should not float their costs.
Weekend and holiday adjustments
If the calculated due date lands on a weekend or public holiday, most contracts allow the client to pay on the next business day without being technically late. This is a kindness, not a legal requirement — a strict reading of "Net 30" means due on day 30, even if that's a Sunday. The calculator above tells you both the strict due date and the business-day-adjusted version.
In practice: if you're being precise (large enterprise client, large invoice), bake the business-day adjustment into the contract language explicitly. If you're being friendly (small client, ongoing relationship), let it slide. Either way, knowing both numbers stops the awkward Monday-morning back-and-forth.
- Strict due date: the literal Net N count. Weekends and holidays count as days.
- Adjusted due date: the next business day if the strict date lands on a weekend or holiday.
- Contract language: "If the due date falls on a weekend or holiday, payment is due the next business day" — adds clarity, costs nothing.
- Real-world practice: most accounts payable departments use business-day adjustment automatically.
Calendar reminders save invoices
The single highest-leverage thing you can do to get paid on time: put the due date in your own calendar before the invoice goes out. The calculator above generates a one-click .ics file (works with Google Calendar, Apple Calendar, Outlook) with a built-in reminder one day before the due date.
Why this matters: chasing payment is much easier when you start within 24 hours of the due date passing. By day 7 the conversation has gone cold; by day 30 you are starting from scratch. A calendar reminder one day before the due date is your trigger to send a friendly "this is due tomorrow" email — which converts roughly 30% of "would have been late" invoices to "paid on time."
- Reminder day -1: send a "due tomorrow" email. Low friction, high conversion.
- Reminder day +1: first overdue reminder if not paid. Friendly tone, no late fee mention.
- Reminder day +7: second reminder with late-fee terms. Mention accrual rate.
- Calendar tool: the .ics export from this page works with every major calendar app.
Negotiating shorter terms
If a client demands Net 60 or Net 90, you have leverage you may not realise: most enterprises will accept a 2% discount in exchange for shorter terms ("2/10 Net 30" — 2% off if paid within 10 days). The math usually works in your favour: a 2% discount for getting paid 50 days earlier is an effective 14% APR, which is much less than the cost of capital you'd pay your bank.
For very long terms (Net 90+), the alternative is invoice factoring: a third party advances you 80-90% of the invoice immediately, then collects from the client at the original due date. The factoring fee is 1-3% of the invoice value. Worth it for cashflow predictability, expensive at scale.
- 2/10 Net 30: 2% off if paid within 10 days, otherwise full amount due Net 30. Strong incentive.
- Deposit on signing: the most powerful tool for long-term contracts. 30-50% upfront removes most of the risk.
- Factoring: sell the receivable for 95-99 cents on the dollar to get cash now. Costs add up.
- Stop offering Net 60 by default: most clients will accept Net 30 if you simply put it on the invoice.