When a Client Asks for Net 60: How to Respond Without Losing the Work

The proposal is approved and the client is excited. Then an email arrives from someone in finance or procurement explaining that their standard supplier terms are net 60, and suddenly a project you were thrilled about has a two-month gap between finishing the work and seeing the money.

If your stomach dropped a little reading that, you are not being difficult. Most service business owners price their work carefully but never learned how to negotiate payment timing, so a terms request from a larger company can feel like a take-it-or-leave-it condition. It usually is not; it is a default, and defaults can be discussed.

This post walks through what net 60 actually costs you, how to decide whether accepting it makes sense for this client, four things you can ask for in return, the exact wording to use, and how to make sure you are paid on day 60 rather than day 85.

What Net 60 Really Costs You

Net 60 means the full balance is due 60 days after the invoice date, but in practice the wait is longer because you rarely invoice on day one. If a project takes four weeks and you bill at the end, you are looking at roughly 90 days between your first hour of work and your first dollar of payment, and a slow approval loop on the client's side can stretch 60 into 75 without anyone technically breaking the agreement.

Longer terms also make late payment more likely. The 2026 Small Business Late Payments Report from Intuit QuickBooks found that 59% of small businesses now have invoices overdue by 30 days or more, up from 47% a year earlier, with an average of $17.7K sitting unpaid. The same report found that 55% of businesses offering net 30 terms have overdue invoices, compared with 26% of those requiring immediate payment. The more room you give, the more of it tends to get used.

Put a number on it. If the project is $12,000 and your monthly overhead including your own pay is $8,000, accepting net 60 means funding roughly six weeks of your life from savings or a credit line while you wait. That is the real price of the terms, and how reliable follow-ups change your monthly cash flow math walks through what that delay does to your monthly numbers.

Why Clients Ask for Net 60 (It Is Rarely About You)

Larger companies standardize payment terms for the same reason they standardize contracts: running one process is easier than running fifty. Their payables team pays in batches, their finance team has a working capital target, and somewhere a policy document says suppliers receive net 60 unless someone senior approves an exception. The person emailing you is usually just relaying that policy, which means you are not arguing with a client who doubts your value. You are asking a process to make room for a smaller supplier, and many companies offer shorter terms for small vendors or an exception path that nobody mentions unless you ask.

First, Decide Whether Net 60 Is Worth It for This Client

Before you respond, answer four questions.

How big is this project relative to your monthly revenue? A $3,000 job on net 60 is an inconvenience, while a $30,000 job on net 60 might be the difference between paying yourself this quarter and not.

Can you float the money for 90 days without borrowing? If the answer is only yes with a credit card, the interest is part of your project cost and should be priced in.

Is this a one-off or an ongoing relationship? Slow-but-reliable payers can be worth accommodating when the work is steady, because after the first cycle the money arrives in a predictable rhythm.

How reliable is this client? Large companies are often slow but rarely disappear, whereas a small agency asking for net 60 carries a different risk.

A useful rule of thumb: never let a single client's unpaid balance grow larger than the amount you could go without for three months. If net 60 would push you past that line, either the terms or the project structure needs to change, and the other cash flow and finance guides can help you find that line.

Four Things to Ask for Instead of Just Saying Yes

Net 60 is a starting position, not a verdict. Each of these counter-offers protects your cash without losing the work.

A deposit before you start. Ask for 25% to 50% of the project value up front, then net 60 on the balance. Most procurement teams can process a mobilization payment even when they cannot shorten their standard terms, and how much deposit to ask for before starting client work covers the standard ranges by industry.

Milestone billing. Instead of one invoice at the end, bill at agreed checkpoints such as kickoff, midpoint, and delivery. Net 60 still applies to each invoice, but the amounts are smaller and the first one lands weeks earlier, which makes this the single most effective change for any project longer than a month.

An early-payment discount. Terms like "2/10 net 60" let the client take 2% off for paying within ten days, and some larger companies actively look for these. Be careful, though, because 2% for 50 days is expensive money; the quiet cost of discounting just to get paid sooner explains when this trade is worthwhile and when it quietly eats your margin.

A price that reflects the terms. It is entirely reasonable to quote one price for net 30 and a slightly higher one for net 60, because carrying their financing for an extra month has a cost. Alternatively, propose net 30 on the first project with a move to net 60 once the relationship is established.

What to Say: Scripts for Responding to a Net 60 Request

The tone you want is calm and matter-of-fact, with no apologizing, no lengthy explanation of your cash flow, and no hint that you are offended.

Accepting with a deposit:

"Thanks for sending the vendor terms. Net 60 on the balance works on our side. To get the project scheduled, we take a 40% deposit at signing, which for this scope is $4,800. Once that is in, I will lock in the start date. Let me know if you need a separate invoice for the deposit."

Proposing milestones instead:

"Happy to work within net 60. For a project of this length we bill in three stages rather than one final invoice: a third at kickoff, a third at the midpoint review, and the final third on delivery. Does that work for your process?"

Neither script asks permission; each states a position and invites the client to confirm, which is what makes them easy to say yes to. If your proposal already includes a clear terms section, this conversation is usually shorter, and how to write a payment terms section clients actually read shows what to include so the question surfaces before the work starts rather than after.

Once You Agree: How to Actually Get Paid on Day 60

Agreeing to net 60 is only half the job; the other half is making sure day 60 is really day 60 and not day 85, and most of that difference comes from avoidable friction on the client's side.

Get into their vendor system before you start. Ask for the supplier onboarding form, submit your tax details, and request a purchase order number if they use them, because an invoice without a PO number goes nowhere for weeks.

Invoice the day the work is delivered, not at month end, since every day you wait to send the invoice is a day added to the 60. A few days later, a short note asking whether it was received and approved, and when payment is scheduled, catches problems early.

Schedule your follow-ups in advance. Long terms are where reminders quietly fall through the cracks, because nothing feels urgent for seven weeks and then suddenly everything does. Decide now that a friendly check-in goes out around day 45, a due-date heads-up around day 57, and a polite follow-up on day 61 if nothing has arrived. If you would rather not keep that calendar in your head, a reminder tool such as DueDrop can sit alongside your existing invoicing software and send those messages for you, in your voice, on the schedule you set.

Frequently Asked Questions

Is net 60 normal for small business clients?

It is common with larger companies, particularly in retail, manufacturing, and enterprise procurement, where extended terms are policy. Among small and mid-sized clients, net 30 or due on receipt are far more typical, and net 30 versus due on receipt breaks down which of those gets you paid faster.

Can I charge a late fee on net 60 terms?

Yes, provided the fee is written into the agreement before the work begins and is reasonable for your jurisdiction. Many freelancers use 1% to 1.5% per month on overdue balances, and in practice the fee mostly signals that the due date is real.

Should I offer an early-payment discount instead of pushing back on terms?

Only if you have priced for it. A 2% discount for payment within 10 days is a meaningful share of your margin, and larger clients sometimes take the discount but still pay on day 30 or 40. A deposit or milestone billing usually protects your cash flow better.

What if the client says net 60 is non-negotiable?

Then move the negotiation somewhere else. If the terms are fixed, the deposit, the billing schedule, and the price are not, so ask for a mobilization payment, propose milestones, or quote a rate that reflects the longer wait. If none of those work and the project would strain your finances, it is fair to decline politely and leave the door open for later.

Key Takeaways

• Net 60 usually means 75 to 90 days from your first hour of work to your first dollar, so plan for that rather than the number in the email.
• Longer terms make late payment more likely: 55% of businesses on net 30 have overdue invoices, compared with 26% on immediate terms.
• Large clients ask for net 60 because of policy, not because they doubt you, and policies often have exceptions.
• Counter with a deposit, milestone billing, an early-payment option, or a price that reflects the terms, and say it without apologizing.
• Once you agree, get into the vendor system early, invoice on delivery, confirm receipt, and schedule reminders before day 60 arrives.