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Invoice payment terms explained
Payment terms define when and how your client is expected to pay. Choosing the right terms protects your cash flow and sets clear expectations.
Tip: Net 30 is the B2B standard, but freelancers and small businesses often do better with Net 14 or “due on receipt.” The shorter your terms, the faster you get paid — as long as clients agree.
Common payment terms
Due on receipt
PIA / ImmediatePayment is expected as soon as the invoice is received. Best used for one-time transactions with new clients, small amounts, or clients with a history of late payment.
Best for: Small projects, new clients, or high-risk situations.
Net 7
N/7Payment is due within 7 days of the invoice date. A short window that works well for quick-turnaround projects or when cash flow is tight.
Best for: Quick jobs, small invoices, trusted repeat clients.
Net 14
N/14Payment due within 14 days. A common middle ground — longer than "due on receipt" but shorter than Net 30. Often used by freelancers.
Best for: Freelancers and consultants, medium-sized projects.
Net 30
N/30Payment due within 30 days of the invoice date. The most common payment term in business-to-business (B2B) transactions.
Best for: Standard B2B projects, established client relationships.
Net 60
N/60Payment due within 60 days. Often used by larger corporations. Can create cash flow challenges for small businesses and freelancers.
Best for: Large enterprise clients, high-value contracts.
Net 90
N/90Payment due within 90 days. Common in some industries (e.g., retail, manufacturing). Generally unfavorable for freelancers or small businesses.
Best for: Long-term projects with agreed milestone structure.
50% upfront
DepositClient pays 50% before work begins and 50% on delivery. Protects freelancers from non-payment while giving clients a lower initial commitment.
Best for: New clients, large projects, custom work.
2/10 Net 30
Early pay discountFull payment is due in 30 days, but the client gets a 2% discount if they pay within 10 days. Incentivizes early payment.
Best for: When you want to speed up payments from reliable clients.
Late payment penalties
Including a late payment clause on your invoices can motivate timely payment. A common approach is 1.5%–2% monthly interest on overdue balances. Always check what is legally enforceable in your jurisdiction.
Example: “Invoices unpaid after 30 days are subject to a 1.5% monthly late fee.”
Set your default payment terms
InvoiceFree pre-fills your payment terms on every new invoice. Set your default in Settings.
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