“Net 60” is a payment term used in business to refer to the number of days a company has to pay an invoice after receiving it. Specifically, “Net 60” means that payment is due 60 days after the date of the invoice.
For a freelancer, agreeing to a payment term of Net 60 can have both positive and negative impacts on their ability to get paid. On the one hand, agreeing to Net 60 can make a freelancer more attractive to potential clients, as it allows the client more time to pay without any immediate impact on their cash flow. In this sense, agreeing to Net 60 can make it easier for a freelancer to win new clients and projects.
On the other hand, Net 60 payment terms can also create cash flow problems for freelancers, as they have to wait a longer period of time to receive payment for their work. This can be especially problematic for freelancers who rely on a steady stream of income to pay their bills and cover their expenses. In addition, Net 60 payment terms can make it more difficult for freelancers to manage their finances and plan for future projects.
In general, freelancers should carefully consider the payment terms they agree to with clients, taking into account both the potential benefits and drawbacks of each option. If cash flow is a concern, it may be worth negotiating for more favorable payment terms, such as Net 30 or even payment upon project completion.