Payment terms (net period) clauses, explained
How long the client has to pay after you invoice. 'Net 30' means 30 days. Longer periods are effectively an interest-free loan from you to the client, and they compound when combined with slow approval cycles.
Market standard
Net 15 to net 30 for freelancers and small agencies. Net 45-60 appears with larger clients but should be pushed back on. Net 90 is a red flag for a small vendor's cash flow.
Red flags
- Net 60 or longer
- Payment clock starts on 'approval' rather than invoice date
- Client may withhold the entire invoice over a dispute about one line item
- No stated due date at all
Suggested wording
Invoices are due within fifteen (15) days of the invoice date. Payment is not contingent on any approval, and the Client may withhold only the specific disputed amount, not the entire invoice.
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Review my contractIs this normal in…
- Payment terms (net period) in a design services agreement?
- Payment terms (net period) in a software / web development agreement?
- Payment terms (net period) in a marketing services agreement?
- Payment terms (net period) in a copywriting & content agreement?
- Payment terms (net period) in a video production agreement?
- Payment terms (net period) in a consulting agreement?
- Payment terms (net period) in a master services agreement (msa)?
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