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What happens if a client does not pay within Net 30 or Net 60?

I have invoices with Net 30/60 terms, but some clients are going past the deadline. What can I actually do when they don't pay on time?

Answer

If a client does not pay within Net 30 or Net 60, the payment is considered late. This may trigger late fees, interest, or other actions if those terms are included in your contract or invoice.

You are still owed the full amount, and there are steps you can take to follow up and try to collect payment.

What steps can you take to collect payment?

Most businesses start with simple reminders by email or phone. If payment is still not made, more formal past-due notices can be sent to document the issue.

These may escalate over time (30, 60, 90 days past due). Keeping records of all communication can help if further action is needed. In some cases, offering a payment plan may help recover the balance.

Can you charge fees or take further action?

If your contract includes late fees or interest, those can usually be applied once the deadline passes. Without those terms, adding extra charges may be harder.

If the client still does not pay, further steps like collections or legal action may be options to recover the unpaid amount, depending on the situation. One can also claim breach of contract; request prejudgment interest; request attorney fees (if contract allows), and maintain lien rights (industry-specific).

What to do next...

  1. Send a reminder as soon as payment is late.
  2. Follow up with formal past-due notices.
  3. Apply late fees if your contract allows.
  4. Keep clear records of all communication.

What to consider in your specific situation

While these steps are common, your options may depend on your contract and business relationship.

  • The wording of your payment and late fee terms.
  • How late the payment is and the amount owed.
  • Your past relationship with the client.
  • Local laws affecting collections or fees.
  • The cost and impact of pursuing further action.

Since every situation is different, consider more information through Rocket Copilot, a Legal Pro, or a legal document review to move forward with confidence.

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Explore more questions about Net 30 / Net 60 terms

Net terms set a specific timeframe—like 30 or 60 days—for payment after an invoice is issued. These questions help you understand how these timelines work and how they impact cash flow and client expectations.

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Pro Reviewed
Published on 04/19/2026
Reviewed by Pamela K. Streng, Esq.

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Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask an Attorney.

Laura Bojart
Laura Bojart
Editorial Researcher and Copywriter

Laura Bojart is an SEO copywriter and editor at Rocket Lawyer. She researches legal and business topics and translates complex ideas into clear, practical content for everyday readers. With her background in journalism and endless curiosity, she approaches each subject by asking the questions readers are likely to have first, making legal information approachable and easy to understand even to those with no legal background.

Discover more articles: FAQs about Work and Payment Terms