Is Net 60 Normal for Freelancers?

Net 60 is a payment term you may encounter as a freelancer. Whether you should accept it depends on when the 60 days begin, how much unpaid work you will carry and whether you can manage the wait.

The important question is: when will the money actually become due under this agreement?

A fixed 60-day period after an invoice is different from 60 days after an approval process with no deadline.

What does Net 60 mean?

Net 60 generally describes a payment period of 60 days. Read the contract to establish the starting event rather than relying on the label alone.

The wording may refer to:

• the invoice date;
• receipt of a valid invoice;
• acceptance of the work;
• approval by the client's accounts department.

Also check whether the agreement specifies calendar days or working days.

A separate condition requiring the client's customer to pay first can make the timeline less predictable still. That is more than a simple 60-day waiting period.

See What Is a Pay-When-Paid Clause for Freelancers?.

How long could you actually wait?

Consider this fictional project, using calendar days:

• you work for six weeks, or 42 days;
• the client takes another 14 days to accept the completed work;
• you can invoice only after acceptance;
• the invoice is received that day and payment is due 60 days later.

The payment timeline is 42 + 14 + 60 = 116 days from starting work. That is 74 days after completing the project.

If the contract gives the client no acceptance deadline, the wording leaves the first part of that wait uncertain. It does not establish that any delay is legally permissible.

The example is not a claim about typical client behaviour. It shows why the invoice trigger matters as much as the headline payment period.

Is Net 60 normal enough to accept?

A client's standard supplier policy may specify Net 60, but that does not establish whether the arrangement suits your business.

Compare:

• regular monthly invoices with predictable due dates;
• a long project that must be completed before the first invoice;
• an engagement with a deposit that reduces the unpaid balance;
• a project where you must pay subcontractors and software costs well before the client pays you.

These arrangements can create very different cash-flow demands even when they all use the same payment period.

Ask how much you could have outstanding at once, especially if several clients pay on similar terms.

Watch for a delayed payment trigger

Consider this fictional wording:

The Contractor may submit an invoice following final acceptance. Valid invoices will be paid within 60 days following approval by the Client's accounts department.

Before those 60 days begin:

• the client must accept the work;
• you must submit an invoice;
• the invoice must meet the stated requirements;
• accounts must approve it.

Check whether each approval step has a deadline and whether the client must explain a rejection. Ask what happens if the client does not respond.

A clear payment period is less useful if the contract leaves its starting point open-ended.

See Can a Freelance Client Reject Work Indefinitely? for the acceptance terms to check.

What is a valid invoice?

A client may require:

• a purchase order number;
• approved timesheets;
• project codes;
• milestone sign-off;
• specific billing details;
• submission through a supplier portal.

Find out those requirements before starting work. Ask who supplies any missing information and how quickly invoice errors must be raised.

If a correction is required, clarify whether it restarts the payment period and whether an undisputed amount can still be paid on time.

What can you negotiate?

Changing the payment period is one option. Changing when you can invoice or how much remains unpaid may be equally useful.

Questions to raise include:

• Could payment be due within 30 days rather than 60?
• Could a deposit be paid before work begins?
• Could I invoice monthly or at defined milestones?
• Could acceptance have a fixed review deadline and objective criteria?
• Could the payment period run from receipt of the invoice rather than a later internal approval?
• Could undisputed amounts be paid while a specific disputed item is resolved?

These are discussion points, not terms every client must accept.

If the contract is already signed, agree any change with the client rather than assuming a shorter deadline on your invoice overrides it.

What about late payment?

The agreed payment period and what happens after a missed deadline are separate questions.

Check whether the contract addresses:

• interest or recovery costs;
• a process for disputed invoices;
• suspension of further work;
• termination for non-payment;
• any notice required before taking those steps.

Applicable law can also affect payment terms and late-payment rights. For UK business transactions, see the government's guidance on when commercial payments become late. Do not assume the contract label alone settles the legal position.

For the contractual consequences of missed deadlines, see Should Freelancers Charge Late Payment Fees?.

Should you accept Net 60?

Before agreeing, make sure you can answer:

1. When can I issue each invoice?
2. Exactly what starts the 60-day period?
3. What could delay that starting point?
4. How much money and work could be outstanding at once?
5. Can I meet my own costs during the wait?
6. What happens if the client misses the due date?

A predictable schedule with manageable exposure is a different proposition from financing a long project followed by an undefined approval process.

For broader context, see Freelance Payment Terms: What Should You Look Out For?.

PactRivet can help you examine the payment wording in your freelance service agreement and prepare questions about deadlines, approval conditions and related clauses.

Check the payment deadlines and conditions in your agreement.

Related guides

• Freelance Payment Terms: What Should You Look Out For?

PactRivet provides general information and questions to consider. It is not legal advice.