What is Net-45?
Net-45 is a payment term meaning full payment is due within 45 days of the invoice date.
Definition
Net-45 is a standard payment term used on invoices indicating that the full invoice amount is due within 45 calendar days of the invoice date. The countdown begins on the invoice date, not on the date the client receives or approves the invoice. At the end of those 45 days, the full net balance is due. Net-45 is common in B2B transactions where clients have longer internal approval and payment processing cycles.
When and Why Freelancers Use Net-45
Freelancers use Net-45 when working with clients who have longer standard payment cycles — typically mid-size to large enterprises, government contractors, educational institutions, and international clients. These organizations often process payments on a monthly or bi-monthly cycle, making 45 days a practical target that aligns with their internal processes. Net-45 is also used when the project delivery timeline is longer and the freelancer invoices upon completion rather than on a recurring schedule.
Net-45 Example
You are a freelance project manager hired to oversee a three-month software implementation for a mid-size company. You invoice them on April 1 upon project completion. With Net-45 terms, the client has until May 16 to submit full payment. If their accounts payable department processes payments on the 15th of each month, this invoice would likely be paid in the May 15 run — 44 days from the invoice date.
Net-45 vs. Other Payment Terms
Net-45 sits between Net-30 and Net-60 on the payment timeline. Net-30 is the standard for most freelance work, giving clients a full month to pay. Net-45 extends that window by half a month, accommodating clients with longer approval chains. Net-60 is common in industries with very long sales or procurement cycles, such as manufacturing, government, or large-scale construction. Choosing the right term depends on your client relationship, your cash flow needs, and what is standard in your industry.
Best Practices for Net-45 Invoicing
Send your invoice immediately upon project completion to start the 45-day clock as early as possible. Clearly state the Net-45 terms on the invoice, including the exact due date. Proactively send a payment reminder around day 30 to keep the invoice visible in the client's accounts payable queue. If you have multiple clients on Net-45 terms, track receivables carefully and ensure your cash flow can cover periods between payments. Eonebill's automatic reminder system helps you follow up without manual tracking.