Understanding Net Payment Terms

Net payment terms define how long after an invoice is received, the client must make the payment. These are commonly written as Net 30, Net 45, Net 60, and so on — meaning the client releases payment 30, 45, or 60 days after receiving the invoice, respectively.

For example:

• Net 30: Payment is due 30 days after the invoice date.

• Net 45: Payment is due 45 days after the invoice date.

• Net 60: Payment is due 60 days after the invoice date.

This means the payment clock starts when the invoice is submitted, and not when the consultant starts work.

Typical Payment Timeline

Here’s a simple example to visualize how this works:

• Project Start Date: March 1, 2026

• Invoice Date: March 31, 2026

• Payment Released:

  • Under Net 30 → April 30, 2026

  • Under Net 45 → May 15, 2026

  • Under Net 60 → May 31, 2026

Although the first payment may appear delayed, subsequent payments typically follow a steady monthly cycle.

In Summary

• Payment schedules depend on client invoice terms, not payroll cycles.

• The first payment generally arrives a set number of days after the first invoice, not after the first week of work.

• Once established, the billing cycle becomes steady and predictable.