The short version
Payment terms say when an invoice must be paid. “Net 30” means the full amount is due 30 days after the invoice date; “due on receipt” means now. Freelancers most often use 7, 14 or 30 days. Terms only bind a client who agreed to them, so settle them before the work starts, not on the invoice.
What the common terms mean
| Term | What it means |
|---|---|
| Due on receipt | Pay when the invoice arrives. In practice, within a few days. |
| Net 7 | The full amount is due 7 days after the invoice date. |
| Net 14 or Net 15 | Due two weeks after the invoice date. |
| Net 30 | Due 30 days after the invoice date. The usual term between companies. |
| Net 60 | Due 60 days after the invoice date. Set by some large companies’ own policies. |
| EOM | End of month: due on the last day of the month the invoice is dated in. |
| 2/10 Net 30 | The client may take 2% off if they pay within 10 days. Otherwise the full amount is due in 30. |
| 50% upfront | Half is invoiced before work starts, the rest on delivery. |
| Payment in advance | The whole amount is paid before the work begins. |
Which terms to choose
- Small or ongoing work: 7 or 14 days. Frequent invoices with short terms keep the amount owed small, which limits what you lose if a client stops paying.
- Larger companies: ask what their payment cycle is before you quote. Many pay on fixed terms set by their own policy, and your invoice saying “Net 14” will not change it.
- New clients and big projects: part of the fee up front. It covers your first weeks of work and shows early whether the client pays.
How to write terms on an invoice
Print the due date as a date, and put the terms in one plain sentence under the total. “Net 14” alone leaves the client to work out when that is.
Payment is due within 14 days of the invoice date.
Payment is due on receipt.
Payment is due within 30 days of the invoice date. As agreed, a late fee of 1.5% a month applies to any balance unpaid after the due date.
Late fees
A late fee is usually written as a percentage a month on the unpaid balance. It has to be something the client agreed to before the work, not a surprise on the invoice.
To see what an agreed fee comes to on a particular invoice, use the late fee calculator.
Deposits and payment up front
A deposit is invoiced before work starts, as its own invoice with one flat-fee line. The final invoice lists the full work and shows the deposit as already paid, so the amount due is the remainder. For retainers that reserve your time, the invoice goes out at the start of the month and is due on receipt.
When the due date passes
Most late payments are oversights. A short reminder the day after the due date, with the invoice attached again, settles most of them. There are five to copy in overdue invoice emails.