A client has as long as your agreed payment terms say. There's no Canadian law that sets a default deadline for paying a freelance or small-business invoice, so "net 30" is a habit and the due date is whatever you and the client agreed. The deadline the law does set runs the other way: how long you have to take an unpaid invoice to court, which is two years in most provinces and three in Quebec.
Is there a legal deadline for paying an invoice in Canada?
For ordinary freelance and service work, no. No federal or provincial law says a client must pay within 30, 60, or 90 days. The deadline comes from your deal with the client: the quote they accepted, your contract, or the terms printed on the invoice.
That puts the job on you. If you want to be paid in 14 days, the number 14 has to be written down somewhere the client saw before the work started, and again on the invoice.
What does "net 30" mean on an invoice?
"Net 30" means the full amount is due 30 days after the invoice date. "Net 15" is 15 days, and "due on receipt" means right away. All three are conventions. None of them carries any legal weight beyond what you and the client agreed to.
The weakness of "net 30" is that it makes the client do math. Write the actual calendar date instead: "Payment due [date]." A busy client can act on a date. A formula gets put off until someone works it out, and that someone is rarely in a hurry.
For freelance work, 14 days is a sensible default. Large companies often have their own payment cycles, so ask about them before you send the first invoice. Their accounts payable team will tell you, and the answer belongs in your quote.
What if you never agreed on payment terms?
Then there's no number of days to point to. The money is still owed, but the due date turns into an argument about what's reasonable, and that's the argument you least want to have with a client who's already late.
Fix it going forward with one sentence in every quote: when payment is due, how to pay, and what happens if it's late. Our post on charging interest on a late invoice has wording you can copy, including the yearly-rate clause most Canadian freelancers leave out.
Do prompt payment laws apply to freelancers?
Only if you work in construction. Ontario's Construction Act requires an owner to pay a contractor's proper invoice within 28 days, and the federal Prompt Payment for Construction Work Act covers federal construction projects. Several other provinces have passed similar rules. All of them are written for construction contracts.
A designer, writer, developer, or consultant billing a business gets no statutory payment deadline from these laws. Your terms are the whole rulebook.
How long do you have to collect an unpaid invoice in Canada?
Two years in most provinces, counted from when you knew, or should have known, that the client wasn't paying. That covers Ontario, British Columbia, Alberta, Saskatchewan, and Manitoba. In Quebec the period is three years under the Civil Code. Prince Edward Island and the territories allow six years. If you're elsewhere, check your province's limitations act before you assume.
Miss the deadline and the debt still exists, but you lose the right to sue for it, which is most of your bargaining power.
Two things can reset the clock in many provinces: a partial payment, or a written acknowledgment from the client that they owe the amount. An email from the client saying "we know we owe you, we'll pay next month" is worth saving.
The practical lesson is to start early. An invoice that's three weeks late is a reminder problem. One that's eighteen months late is a legal problem with a deadline attached.
What should you do when an invoice passes its due date?
Work through the steps while the invoice is still fresh. Send a polite reminder a few days before the due date, another on the day, and a firmer note a week after. If it drags past a few weeks, call. If it reaches a couple of months with no reply, send a formal demand letter and look at your province's small claims court.
Our guide on what to do when a client won't pay walks through each step, and automatic payment reminders handle the first three for you. On bigger projects, a deposit keeps the amount at risk small from the start. If you'd rather not write each reminder from scratch, our client email scripts have copy-and-paste wording for every stage.
Loot puts a due date on every invoice and sends your payment reminders automatically. It's Canadian, built for freelancers, and free to start.
Frequently asked questions
How long does a client have to pay an invoice in Canada? As long as your agreed payment terms say. No Canadian law sets a default payment deadline for freelance or small-business invoices, so the due date comes from your quote, contract, or invoice terms.
Is net 30 a legal requirement in Canada? No. "Net 30" is a common convention meaning payment is due 30 days after the invoice date. You can set any term you and the client agree to, such as 14 days or a specific date.
Do prompt payment laws apply to freelancers in Canada? Only in construction. Ontario's Construction Act and the federal Prompt Payment for Construction Work Act set payment deadlines for construction contracts. Other freelance and service work relies on the terms you agreed with the client.
How long do I have to sue for an unpaid invoice in Canada? Two years in most provinces, including Ontario, British Columbia, Alberta, Saskatchewan, and Manitoba. Three years in Quebec. Six years in Prince Edward Island and the territories. The clock starts when you knew, or should have known, the client wasn't paying.
Can the limitation period on an unpaid invoice restart? In many provinces, yes. A partial payment or a written acknowledgment from the client that they owe the amount can restart the clock, so keep any email where the client admits the debt.
This is general information and not legal advice. Checked against provincial limitation statutes and Ontario's Construction Act. For a specific dispute, talk to a lawyer or your provincial small claims court.