Billing & Cash Flow

Net Terms (Net 30)

Agency glossary · Updated July 2026

Definition

Net terms are the number of days a client has to pay an invoice after it is issued. Net 30 means payment is due within 30 days; net 15 and net 7 are shorter. The terms set how long the agency effectively lends the client the money for work already done.

Why it matters

Longer net terms mean the agency finances its clients out of its own cash. Shortening terms, or asking for a deposit, is one of the fastest ways to improve cash flow without raising prices.

Tip

Shorter terms plus easy online payment and gentle automated reminders get you paid faster than long terms and manual chasing.

Frequently asked questions

What does net 30 mean?

Net 30 means the client has 30 days from the invoice date to pay. It is a common payment term for agencies. Shorter terms like net 15 or net 7, or a deposit up front, improve cash flow because the agency finances the client for less time.

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