Payment terms tell the client when you expect to be paid. Written clearly, they settle the question before it arises. Written vaguely, they invite delay.
The usual terms
You will meet these over and over:
- Due on receipt: payment is expected as soon as the invoice arrives.
- Net 7, Net 14, Net 30: payment is due that many days after the invoice date. Net 30 means 30 days.
- End of month: payment is due at the end of the month in which the invoice is dated, or of the following month.
- 50 percent upfront: half before work starts, half on completion. Common for design and building work.
- 2/10 Net 30: a 2 percent discount if paid within 10 days, otherwise the full amount in 30.
Choosing for your business
Your cash needs and your client's habits both matter. Large companies often have fixed payment cycles and expect 30 or more days. Individuals and small clients can usually pay faster. If you have many costs to pay before the client does, shorter terms and deposits protect you. You can set different terms for different clients.
Writing them down
Put the terms on your quote and on the invoice, and say the date, not only the number of days: 'Payment due by 14 April 2026'. Our invoice generator works the due date out for you if you choose a number of days, or you can pick a date.
Late fees and interest
If you want to charge for late payment, agree it in advance and state it on the invoice or in your terms, for example 'a late fee of 1.5 percent per month applies to overdue balances'. Some countries have rules for the maximum or for statutory interest, so check before you rely on it. Our Late Payment Calculator can show what a given rate adds up to.
Deposits and milestones
For long projects, split the price into stages: a deposit, a payment at a halfway point and a final payment on completion. It reduces your risk and spreads the client's cost. Make sure each stage is described clearly and linked to something the client can see.
Be consistent
Apply your terms evenly. If you chase some clients and not others, the late payers learn that terms are optional. A clear policy and a regular reminder routine make you look organised and get you paid.
Tools for this guide
More tips
- What to Put on an Invoice: A Checklist
- Ten Ways to Get Paid Faster as a Freelancer or Small Business
- Invoice Numbers: How to Number Your Invoices Sensibly
- Quote, Estimate, Pro Forma, Invoice: What Is the Difference?
- Credit Notes: When to Use One and How to Write It
- How to Chase a Late Payment Without Damaging the Relationship
- Purchase Orders Explained for Small Businesses
- VAT, GST and Sales Tax on Invoices: The Basics
- Hourly, Day Rate or Fixed Price: How to Price Freelance Work
- Keeping Invoice and Receipt Records: What to Keep and for How Long
- Invoicing Clients in Other Countries and Currencies
- Tracking Billable Time So You Never Under-Bill Again
- Your First Invoice: A Calm Guide for New Freelancers
- All tips and guides
These guides are general information to help you get paid and stay organised. They are not legal or tax advice. Rules differ by country and change over time, so check with your tax authority or an adviser.