Getting paid
Net Terms and Late Payments
Quick answer
Net terms are the number of days a brand has to pay after you send an invoice. Net 30 means payment is due 30 days after the invoice date. Put the terms, the due date, and any late fee in your contract and on every invoice.
Key takeaways
- Net terms count from a start date, so the contract should say which date starts the clock.
- Shorter terms and a deposit protect your cash flow.
- Write the exact due date on the invoice so no one has to work it out.
- A late fee only works if the contract includes it.
What net terms mean
Net terms tell a brand how long it has to pay. The number after “Net” is the number of days. A shorter term means you are paid sooner. A longer term means you are lending the brand your money while you wait.
| Term | What it means | Watch for |
|---|---|---|
| Due on receipt | Payment is due as soon as the brand gets the invoice | Brands often treat this as a request, so add a date |
| Net 15 | Due 15 days after the invoice date | Works well for smaller brands that pay quickly |
| Net 30 | Due 30 days after the invoice date | Common with larger brands, and the start date matters |
| Net 60 | Due 60 days after the invoice date | You wait about two months, so ask for a deposit |
| Net 90 or longer | Due 90 or more days after the invoice date | Long waits put pressure on your cash flow, so push for shorter terms or milestones |
What starts the clock
The clock can start on different dates. Check which one your contract uses:
- The invoice date. The usual choice, and the easiest to prove.
- The date the brand receives the invoice. Fair, if you keep proof of delivery.
- The date of approval. Can leave you waiting if approval has no deadline.
- The date the brand is paid by its own client. Often called “pay when paid.” Avoid it, because it makes your pay depend on someone else.
Deposits and milestones
A deposit means part of the fee is paid up front. Milestones split the fee across stages, such as signing, delivery, and posting. Both reduce the time you spend unpaid. For longer terms, ask for at least one of them.
Late fees and interest
A late fee or interest charge only applies if the contract says so. Include the rate or amount, and when it starts. Rules about what you can charge vary by place, so write “where the law allows” and ask a lawyer about larger amounts.
How to write payment terms
Brand will pay Creator [total fee] in [currency]. A deposit of [amount or percentage] is due by [date]. The balance is due [net terms] days after the date of Creator’s invoice.
Creator may invoice [on signing / on delivery of final files / on posting].
Payments more than [number] days late may be charged [late fee or interest], where the law allows.
What you can say
Can we set payment terms at [net terms] from the invoice date, with a deposit of [amount or percentage] up front?
Our contract says payment is due [net terms] days after the invoice date, not after approval. Can you confirm?
Does your finance team need a purchase order number or vendor setup before I invoice?
Payment terms checklist
Checklist
- The contract names which date starts the clock.
- The invoice shows the exact due date.
- There is a deposit or milestone for longer terms.
- The late fee, if any, is in the contract.
- I know whether the brand needs a purchase order or vendor setup.
Frequently asked questions
What does Net 30 mean?
Net 30 means the brand has 30 days from the invoice date to pay. Other terms follow the same pattern.
Is Net 30 standard?
It is common, especially with larger brands, but it is not a rule. Terms are part of the negotiation.
Can I charge a late fee?
Only if your contract says so, and local rules may limit what you can charge. Write the fee into the contract and talk to a lawyer about larger amounts.
When should I send the invoice?
When the contract says you can. Many creators invoice a deposit on signing and the balance on delivery or posting.
What is “pay when paid”?
It means the brand pays you only after its own client pays it. It shifts the brand’s risk to you, so try to avoid it.
Can I ask for payment up front?
Yes. A deposit or full payment up front is a normal request, especially for new relationships or larger projects.
What if the brand needs a purchase order?
Ask for the number before you invoice. Without it, the invoice may sit unpaid. See What Every Creator Invoice Needs.