My Client's Contract Says Payment Is "Net 90". Can I Push Back?

Why do big clients ask for net 90?

Long payment terms are usually a treasury policy rather than a judgment about you. Procurement departments hold cash longer by paying suppliers late, and the same template goes to a multinational supplier and a solo designer. That is useful to know: the person you deal with may not care about the term, and procurement often has a small-supplier exception or an early-payment programme. Ask.

What to negotiate, in order of ease

You do not need to win all of these. A deposit plus milestones can make net 90 bearable, because you are never carrying the whole fee.

• A deposit or upfront payment, such as 30% to 50% before work starts.
• Milestone billing, so you invoice as phases complete rather than at the end.
• A small-supplier term, such as net 30, which many companies offer for individuals and small businesses.
• An early-payment option, where you accept a small discount in exchange for faster payment.
• A higher rate that reflects the cost of waiting.

Watch the clock start

The real payment period depends on when the clock starts. "Net 90 from invoice" is 90 days. "Net 90 from acceptance of the deliverables" can be much longer if acceptance is slow or undefined. "Net 90 from the end of the month in which the invoice is received" adds up to another 30 days. Ask for the clock to start from the date of a correct invoice, and for a deemed acceptance period so work is treated as accepted if the client does not reject it within, say, 10 business days.

Do any laws help freelancers facing net 90 terms?

Some jurisdictions now protect freelancers on payment timing. New York City's Freelance Isn't Free Act and New York State's freelance law require a written contract for many freelance engagements and, where no payment date is set, payment within 30 days of completing the work. Illinois has a similar Freelance Worker Protection Act. These laws generally allow the parties to agree a later date, so they do not automatically override a signed net 90 term, but they strengthen your hand and add penalties for non-payment. Check whether a law like this applies where you or the client are based.

Does California's freelance law affect net 90 terms?

California joined New York and Illinois on January 1, 2025. Its Freelance Worker Protection Act, Business and Professions Code § 18100 and following, covers a one-person business hired as a bona fide independent contractor to provide professional services, as defined in Labor Code § 2778, for $250 or more, counting all contracts with the same client over the previous 120 days. That list includes fields such as marketing, graphic design, freelance writing and photography. Covered clients must give you a signed written contract that itemizes the services, their value and the rate and method of payment, states the payment date or how it is set, and keep it for at least four years (§ 18103).

Under § 18102, you must be paid by the date in the contract or, if none is stated, within 30 days after you complete the work. As with New York's law, the parties can agree a later date, so a signed net 90 term generally stands. What California adds is a rule against using payment as leverage: once you have started work, the client may not require you to accept less money, provide more goods or services, or grant more intellectual property rights than the contract states, as a condition of timely payment. That is useful when net 90 from acceptance turns into requests for extra changes before sign-off.

Coverage depends on the professional services list in Labor Code § 2778, so check whether your work falls within it before relying on the law, and keep the written contract it requires on file.

Add a late-payment clause

If you accept long terms, make sure lateness beyond them costs something. A reasonable clause sets interest on overdue amounts, such as 1% to 1.5% per month or the maximum permitted by law, and a right to pause work if invoices are more than 15 days overdue. State usury laws cap interest, so keep the rate modest. Without this, "net 90" can quietly become net 150 with no consequence.

Keep your own position strong

• Keep ownership of the deliverables until you are paid, where you can.
• Confirm the correct invoicing process in writing: purchase order numbers, supplier registration, the right email address.
• Register as a supplier early, because onboarding delays payment too.
• Put the payment date in your calendar and follow up a week before it is due.

When should you walk away from net 90 terms?

Long terms are a cash flow problem, not a legal one, so it comes down to whether you can afford to wait. If the project is large relative to your monthly income and the client refuses a deposit, milestones and a small-supplier term, the engagement may cost you more than it pays. A smaller project with the same client on faster terms is often a better first step.

A worked example

Tomás quotes $24,000 for a three-month research project. The client's contract says net 90 from acceptance. He negotiates a 25% deposit, monthly milestone invoices, a 10-business-day deemed acceptance and a 1% monthly late fee. His first cash arrives on day one instead of around day 180, and his largest outstanding balance at any time is $6,000 instead of $24,000.

Sample wording you can propose

"Contractor will invoice 25% on signature and the balance in monthly instalments as milestones are completed. Invoices are payable within 45 days of receipt. Deliverables are deemed accepted unless Client gives written notice of a material defect within 10 business days of delivery. Overdue amounts accrue interest at 1% per month, and Contractor may suspend work if any invoice is more than 15 days overdue."

Common mistakes

• Assuming net 90 is fixed because it appears in a template.
• Ignoring when the payment clock starts.
• Accepting long terms without a late-payment clause.
• Missing supplier registration steps that delay the first payment.
• Carrying the whole project fee at risk until the end.

Quick checklist

• Can you get a deposit or milestone payments?
• Is there a small-supplier or early-payment option?
• Does the clock start at invoice, or at acceptance?
• Is there a deemed acceptance period?
• Is there interest and a right to pause work for late payment?
• Does a freelance payment law apply to you?

Key terms explained

These terms decide how long you actually wait to be paid.

• Net 90: payment is due 90 days after the stated trigger, usually the invoice date.
• Deemed acceptance: work is treated as accepted if the client does not reject it within a set period.
• Early-payment discount: a small reduction in exchange for being paid sooner.
• Supplier onboarding: the client's process to register you for payment.
• Suspension right: your right to stop work while invoices are overdue.

How to raise it without losing the deal

Timing and tone matter. Raise payment terms early, alongside scope and price, rather than after you have agreed everything else. Frame it as a practical constraint, not a complaint: you are a small business, you fund the work upfront, and shorter terms or a deposit let you prioritise their project. Offer a trade, such as net 30 in exchange for a slightly lower rate, or net 90 at your standard rate plus a deposit. Procurement teams respond to concrete options better than to a flat objection.

If your contact says the terms cannot change, ask whether there is a supplier exception process and who approves it. Many companies have one for sole traders, diverse suppliers or small businesses, and it is rarely advertised.

Sample email

"Thanks for sending the agreement. Everything looks workable, with one practical point: as a small business I fund the work upfront, so net 90 is hard for me to carry on a project this size. Could we do a 25% deposit with monthly milestone invoices on net 30? If net 90 is fixed on your side, a deposit and milestones would make it work. Happy to discuss."

If the client pays late anyway

Keep a record of each invoice, the due date and every reminder. Send a friendly reminder a few days before the due date, a firm one a week after, and a formal demand letter if the invoice is 30 days overdue, citing the contract's late-payment clause and any freelance payment law that applies. Small claims court is a practical option for many freelance invoices, and the limit varies by state. Our guide to a client who has not paid covers these steps in detail.

Know your cash flow before you sign

Net 90 is negotiable more often than it looks, and the terms around it matter as much as the number. If you want the payment, acceptance and late-fee clauses checked together, upload the contract before you agree.