Question
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...
- Send a reminder as soon as payment is late.
- Follow up with formal past-due notices.
- Apply late fees if your contract allows.
- 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.
At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.
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 a Legal Pro.
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Disclosures
- This page offers general legal information, 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 a Legal Pro.