Payment terms
Net 30 vs Net 60 vs Due on Receipt: Payment terms compared
Payment terms decide how long your money is locked up after you invoice. Net 30 is the B2B default, Net 60 is buyer-friendly, Due on Receipt gets you paid fastest. Choose the one that fits your cash flow — not the client's wishlist.
TL;DR
Net 30 = pay within 30 days of the invoice date. Net 60 = pay within 60 days. Due on Receipt = pay immediately upon receiving the invoice. Net 30 is the default for B2B work; Due on Receipt is normal for one-off services and small amounts.
Due on Receipt
Get paid the day you invoice
Payment is due as soon as the invoice is delivered. Best for small amounts, one-off services, new customers without credit history, or anyone with a track record of slow paying. The downside: it signals you don't trust the buyer, which can be awkward in established B2B relationships.
Read full definitionNet 30
The B2B default
Payment is due 30 days from the invoice date. This is the standard term for most B2B services and lets the buyer fit your invoice into their monthly accounts payable cycle. Strikes a balance between cash flow for you and reasonable terms for the buyer.
Read full definitionNet 60
Common with large enterprises
Payment is due 60 days from the invoice date. Common when selling to large corporations, governments, or buyers who use 'net 60' as a procurement standard. Improves your chances of winning bigger contracts but ties up your cash for an extra month.
Read full definitionNet 30 vs Net 60 vs Due on Receipt at a glance
| Attribute | Due on Receipt | Net 30 | Net 60 |
|---|---|---|---|
| Payment due | Immediately on receipt | Within 30 days of invoice date | Within 60 days of invoice date |
| Best for | One-off services, new clients, small amounts | Standard B2B services and SaaS | Enterprise / government contracts |
| Cash flow impact | Best — money in same week | Predictable monthly cycle | Two-month lag — needs runway |
| Common late? | Sometimes — small clients pay slow | Often slips to 35-45 days | Often slips to 75-90 days |
| Buyer reaction | Can feel pushy | Expected and frictionless | Welcomed, can win bigger deals |
| Late fee? | Yes — 1-2% per month | Yes — 1-2% per month after grace period | Yes — usually 1-1.5% per month |
| How to write it | 'Due on Receipt' | 'Net 30' or 'Payable within 30 days of invoice date' | 'Net 60' or 'Payable within 60 days of invoice date' |
When to use which
Use Due on Receipt when…
You need cash quickly and the relationship can support it.
- Small amounts (under ~$500) where it's not worth chasing
- First job for a new client (until they prove reliable)
- Walk-up or one-off services
- You took a deposit and now collecting the balance on delivery
Use Net 30 when…
You're in a normal B2B relationship and want to be friendly without lending the buyer money for free.
- Recurring monthly retainer or SaaS
- Project work for established clients
- Anything in the $500–$50,000 range
- When you have other clients funding short-term cash flow
Use Net 60 when…
The buyer requires it and you can afford the wait.
- Selling to enterprises or government
- Winning a large contract that justifies the cash drag
- When you have a strong cash buffer or invoice financing
- Larger ticket sizes ($50,000+) where the buyer's procurement cycle is monthly
Frequently asked questions
When does the Net 30 clock start — invoice date or delivery date?
Is 'Net 30' the same as '30 days from today'?
Should I offer a discount for early payment?
What's a fair late fee?
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