The common terms, plainly
Due on receipt
Payment expected immediately on invoice. Best for you, rare on client-supplied contracts.
Net 15 / Net 30
Standard for small business and freelance work. Net 30 is the most common default in the US.
Net 60 / Net 90
Common with large corporate clients and agencies. Not unusual, but it means financing the client's operations for two to three months.
2/10 Net 30
A 2% discount if paid within 10 days, otherwise full amount at 30. An incentive structure rather than a deadline.
Why the start date matters more than the number
Net 30 from the invoice date and Net 30 from acceptance are very different terms wearing the same name.
If payment runs 30 days from acceptance, and acceptance has no deadline of its own, then a client who takes three weeks to review has quietly turned Net 30 into Net 51. Nothing in the contract has been breached.
This is why the acceptance clause and the payment clause need reading together. Neither one alone tells you when you get paid.
Late fees
Workable: A stated late fee — commonly 1% to 1.5% per month on the outstanding balance — with a defined grace period.
Weak: No late fee clause at all. Without one, a client who pays 90 days late has cost you nothing they're contractually obliged to make up.
Late fee caps vary by state, and some states limit what can be charged on commercial invoices. It's worth checking your own rather than copying a figure from a template.
The part most guides skip: Net 30 often isn't 30 daysLarge clients frequently run invoice approval on a fixed cycle — for example, invoices are batched and approved once a month, and the payment clock starts only after approval. A contract that says Net 30 can therefore mean anything up to 60 days in practice, entirely within its own terms. If you're contracting with a company large enough to have an accounts payable department, the useful question isn't "what are your payment terms" but "what date does the countdown start, and is there an approval cycle before that."
Questions to ask before you sign
- What are the stated payment terms — Net 15, 30, 60?
- What event starts the clock: invoice date, delivery, or acceptance?
- Is there an internal approval step before the clock starts?
- Is there a late fee, and at what rate?
- Is there a grace period before late fees apply?
- Are payments tied to milestones, or all due at the end?
Sources
- U.S. Small Business Administration — invoicing and payment terms guidance
- Federal Prompt Payment Act — payment timing rules for federal contractors
This is general information, not legal advice. Docly helps you find and understand what a document actually says. It does not tell you whether a clause is enforceable where you live, and it is not a substitute for a lawyer. For a decision with real money attached, get advice from an attorney licensed in your state.
Find out what your contract actually says
Paste a clause or upload the whole document and ask in plain English. Every answer cites the exact line it came from.
Check a clause free →