How to Manage Net 60 and Net 90 Payment Terms

Many brands and large companies pay vendors on Net 60, Net 90, or longer timelines.

For creative businesses, that can create real pressure. The work may be complete. The invoice may be approved. The revenue may be earned. But cash may still be months away.

Why long payment terms are difficult

Long payment terms can affect:

• Payroll
• Contractor payments
• Talent payments
• Vendor obligations
• Production costs
• Media costs
• New business opportunities
• Founder stress
• Growth planning

The larger the client, the more formal and delayed the payment process may be.

How to manage long payment cycles

1. Track every receivable

Know what is owed, by whom, when it is due, and what documentation supports it.

2. Forecast weekly cash flow

A 13-week cash flow forecast can help you see timing gaps before they become emergencies.

3. Negotiate better terms where possible

Consider deposits, milestone payments, partial upfront payments, shorter approval windows, or late payment language.

4. Follow up before invoices are overdue

Do not wait until the due date has passed. Confirm receipt, approval status, and payment timing early.

5. Consider receivables-backed working capital

If the receivable is eligible, financing may help bridge the gap between invoice issuance and client payment.

What not to do

Avoid waiting until the business is in a cash emergency.

Long payment terms should be planned around before they create pressure. If you know a client pays in 90 days, build that timing into your forecast and capital strategy.