Net payment terms · Consulting
Net payment terms in consulting: what is normal
Net-30 is the consulting norm; Net-60 or 'pay when the client's project is funded' pushes the risk onto the consultant.
Typical range
Net-15 to Net-30 from invoice. Retainers billed in advance for the coming period; project invoices Net-30 with a late fee.
Off-market
Net-60 or longer, or payment contingent on the client's own budget approval or funding round, so the consultant's fee depends on events they do not control.
One-line fix
"Invoices are Net-30 with a 1.5% monthly late fee. Retainers are billed in advance. Payment is not contingent on Client's internal budget or funding."
What we see
Consulting fees are largely the consultant's own time, so a long net window is financing the client with the consultant's labor. Net-15 to Net-30 is the healthy range, with retainers billed ahead of the period they cover.
The consulting-specific trap is contingent payment: fees due only when the client's budget is approved, their project is funded, or their own client pays. That makes the consultant a co-investor in outcomes they have no control over, and it should be declined or explicitly priced as risk.
A stated late fee (around 1.5% per month) and a clause confirming payment is not contingent on internal approvals keep the engagement on firm footing. Long or contingent terms are where consulting cash flow quietly breaks.
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