What Is Net 60 Payment Terms?

Net 60 payment terms mean the client must pay the invoice within 60 calendar days from the invoice date.

If you send an invoice on May 1, payment is due by June 30. If that due date falls on a weekend, most clients will process payment on the preceding Friday or the following Monday, depending on their internal policy. It's the longest standard payment window you'll commonly encounter as a freelancer or contractor — and it's often non-negotiable when dealing with large enterprises.

How Net 60 Works

Net 60 starts counting from the invoice date — not the date the client receives it, not the date they approve it, not the date the work was completed. The invoice date printed on the document is the starting point.

Example:

• Invoice date: June 1
• Net 60 due date: July 31

In practice, the actual wait is often longer. Companies with bi-monthly payment runs (1st and 15th) that miss a run on July 31 may push payment to August 15 — meaning a real-world wait of 75+ days from a June 1 invoice.

This is why a Net 60 invoice can easily result in 65–75 days of actual wait time.

Calculate your exact due date

Use the Net 30 / Net 45 / Net 60 Due Date Calculator to instantly find your payment due date and estimated AP payment run date.

Net 60 vs Net 30 vs Net 45

Net 60 is the longest standard payment term. It's rarely a choice — it's usually a policy imposed by the client's AP department. Freelancers who haven't worked with large enterprises before are often caught off guard.

For a comparison of all common payment terms and how they interact with corporate payment cycles, see Invoice Payment Terms: Net 30, Net 45, Net 60 and More. You can also explore our dedicated guides on Net 30 payment terms and Net 45 payment terms.

When Clients Use Net 60

Net 60 is almost always a top-down company policy, not a client preference. It appears in these situations:

New vendor setup. Many large enterprises have strict vendor onboarding processes — W-9 collection, bank account verification, procurement system registration. Net 60 gives them two full months to complete setup while your invoice sits in the queue. This sometimes normalizes to Net 45 or Net 30 after you're established in their system.

Enterprise payment policy. Fortune 500 companies and their subsidiaries often have blanket Net 60 or Net 90 terms for all contractors. These are embedded in the vendor agreement and are non-negotiable once signed.

Government and public sector contracts. Government agencies frequently operate on Net 60 or longer due to multi-step appropriation and approval processes. Some municipal contracts can stretch to Net 90 by statute.

Multi-tier approval chains. Projects that require sign-off from a project manager, finance director, department head, and procurement officer before AP releases payment need more time. Net 60 builds that buffer in without the invoice going overdue.

Construction and manufacturing. These industries operate on extended payment cycles as a baseline. Net 60 is often the floor, not the ceiling.

When to Use Net 60 on Your Own Invoices

Don't. Unless you're in an industry where Net 60 is the norm (construction, government contracting), defaulting to Net 60 on your invoices extends your wait for no reason.

Use Net 30 for most work. Accept Net 60 only when:

• The client's vendor agreement specifies it and you can't negotiate
• The industry standard is Net 60 or longer
• You've priced the project to account for the two-month wait

If a client insists on Net 60, that's a business decision you can accept or walk away from. The key is to price it correctly.

How to Accept Net 60 Without Hurting Cash Flow

Price it in. Sixty days means you're financing two months of work before you see any money. Many freelancers build a 10–20% premium into their rates for Net 60 clients. A project that would normally be $5,000 becomes $5,500–$6,000 to account for the cost of waiting.

Negotiate a deposit. Even when you can't change the Net 60 payment terms, you can often negotiate a 25–50% deposit upfront. The deposit falls outside the standard payment terms and is due before work begins. This cuts your actual cash flow exposure in half.

Use milestone invoicing. Invoice at 30% completion, 60% completion, and final delivery instead of one invoice at the end. Your first invoice under Net 60 is due around the time you'd be finishing the project under a single-invoice structure — which means you could be receiving the first payment while still working.

Clarify when the 60 days start. Ensure the contract specifies that Net 60 runs from the invoice date, not from when the client "receives and approves" it. Some enterprise clients attempt to reset the clock on internal approval — address this before signing anything.

Add the explicit due date. "Net 60 — Due July 31" is more enforceable than "Net 60" alone. It gives you a specific date to reference in follow-up communications and removes ambiguity.

How to Add Net 60 to Your Invoice

The payment terms field on your invoice should clearly state "Net 60." In InvoiceCraft, Net 60 is one of the built-in options in the Payment Terms dropdown, alongside Net 30, Net 45, Due on Receipt, and Net 15. The term and due date print clearly on the PDF so your client's AP department can process it without confusion.

If your invoice generator doesn't include Net 60 as an option, type it directly into the payment terms field. "Net 60" is universally recognized in AP departments.

Frequently Asked Questions

What does Net 60 mean on an invoice?

Net 60 means the client must pay within 60 calendar days from the invoice date. An invoice dated June 1 is due July 31 under Net 60 terms.

Is Net 60 standard?

Net 60 is standard in large enterprise, government, and some manufacturing and construction contexts. For most freelance and small business work, Net 30 is more standard. If a client offers Net 60 as a default, it's worth asking whether Net 30 or Net 45 is negotiable.

Can I negotiate Net 60 down to Net 30?

Yes — but you need to do it before signing the contract or vendor agreement. Once the purchase order is issued with Net 60, AP will follow the PO regardless of what your invoice says. The best time to negotiate is during the contract phase, before work begins.

What's the difference between Net 45 and Net 60?

Net 45 gives the client 45 days to pay; Net 60 gives them 60 days — an additional two weeks on top of an already extended window. For a freelancer, this is a meaningful difference: on a $5,000 invoice, Net 60 versus Net 45 means two additional weeks of waiting. For a full breakdown, see What Is Net 45 Payment Terms?.

Does Net 60 start from the invoice date or delivery date?

From the invoice date, by convention and in most contracts. To eliminate any ambiguity, add the explicit due date to your invoice: "Net 60 — Due [date]." If a client attempts to argue the clock starts on delivery or approval, that should be addressed in the contract before work begins.

What happens if the client doesn't pay by the Net 60 due date?

Payment is late. Send a polite reminder on day 1 past due, a firmer follow-up at 7 days, and escalate at 15–30 days. If your contract includes a late payment clause (e.g., 1.5% monthly interest on overdue balances), reference it at the 15-day mark. For the full late payment playbook, see Invoice Payment Terms Explained.

Should I use Net 60 for international clients?

Only if it's standard in their market or required by their procurement policy. For international clients, Net 30 is a reasonable default. Be sure to also specify the currency clearly on the invoice — "Net 60 — Due July 31 — USD" leaves no room for ambiguity.

---

Need to add Net 60 to your invoices? InvoiceCraft includes Net 60, Net 45, Net 30, and other standard terms as built-in options — no setup required. Free, no signup.