Invoice Payment Terms: 12 Examples and How to Choose the Right Ones
"Payment terms: Net 30." Three small words at the bottom of an invoice — and they decide whether you get paid in two weeks or two months. Most freelancers copy whatever terms they saw on someone else's invoice without thinking about it, then wonder why clients always pay at the last possible moment. This guide explains the common payment terms with real examples, shows you how to pick terms that fit your business, and covers how to write them so clients actually follow them.
What invoice payment terms are
Payment terms are the conditions under which you expect to be paid: how long the client has, whether there's a discount for paying early, what deposit you require, and what happens if they're late. They live in two places: your contract (where they're agreed) and your invoice (where they're restated).
Terms do three jobs. First, they set expectations — a client who sees "due within 14 days" plans differently from one who sees nothing. Second, they give you leverage — you can't chase a late payment if no due date was ever set. Third, they filter clients: businesses that push back hard on reasonable terms are telling you something about how they'll pay.
The 12 most common payment terms, with examples
1. Due on receipt
"Payment due upon receipt of this invoice." The strictest standard term — technically the client should pay immediately. In practice, "immediately" still means whenever their next payment run happens, so this usually lands as 3–7 days for organised clients and means nothing to disorganised ones. Best for: small one-off jobs and clients you don't fully trust yet.
2. Net 7
"Payment due within 7 days of the invoice date (Net 7)." Short, punchy, and increasingly popular with freelancers. A week is enough time for any legitimate business to process a payment, and the short window keeps your invoice near the top of the pile. Best for: freelancers who invoice frequently and want fast cash flow.
3. Net 14
"Payment due within 14 days of the invoice date (Net 14)." The sweet spot for most freelancers — firm enough to keep cash flowing, relaxed enough that no reasonable client objects. If you currently have no terms at all, Net 14 is the single best upgrade you can make. Best for: most freelance and project work.
4. Net 30
"Payment due within 30 days of the invoice date (Net 30)." The traditional business standard — and the slowest you should ever accept by default. A month is a long time to wait for money you've already earned, and "Net 30" clients have a habit of paying on day 30 exactly. Only agree to this if the client genuinely needs it (some large companies have fixed monthly payment runs). Best for: large corporate clients with formal procurement processes.
5. Net 60 (and beyond)
"Payment due within 60 days." Common in enterprise and government contracts, painful for freelancers. If a client demands Net 60, consider whether the project is worth two months of waiting — and consider raising your price to cover the financing cost. Never accept Net 60 by default; it's a term you concede, not one you offer. Best for: almost never, unless the contract value justifies it.
6. 2/10 Net 30
"Take a 2% discount if you pay within 10 days; otherwise the full amount is due in 30 days." An early-payment discount. The maths is generous to the client (2% for 20 days early is a strong annualised return), which is exactly why it works — accounts departments love capturing discounts. You trade a small margin for much faster payment. Best for: larger invoices where cash flow matters more than the last 2%.
7. 50% deposit, balance on completion
"50% deposit due before work begins; remaining 50% due on delivery." The freelancer's best friend. A deposit commits the client, covers your early costs, and — critically — means the worst case is chasing half an invoice instead of a whole one. For project work over a few hundred, a deposit should be non-negotiable. Best for: project-based work of any significant size.
8. Staged / milestone payments
"30% on kickoff, 40% on draft delivery, 30% on final sign-off." For longer projects, tie payments to milestones instead of one big invoice at the end. Each milestone is a natural checkpoint: if a client goes quiet, you find out after stage one, not after six weeks of work. Define the milestones and amounts in the contract before starting. Best for: projects lasting more than a month.
9. Cash on delivery (COD)
"Payment due before files / goods are released." Common for physical products and final deliverables like source files. You simply don't hand over the goods until the money arrives. It's blunt but completely fair — and it eliminates chasing entirely for that invoice. Best for: deliverables the client can't usefully receive without paying.
10. End of month (EOM)
"Payment due by the end of the month following the invoice date." If you invoice on 10 March, payment is due 30 April. This suits clients who batch all supplier payments monthly, but it's slow — an early-month invoice can mean nearly 60 days of waiting. If you use EOM, invoice as early in the month as possible. Best for: retainer clients with monthly billing cycles.
11. 15 MFI (Monthly From Invoice)
"Payment due on the 15th of the month following the invoice." A more precise version of EOM that gives both sides a concrete date. Less common than Net terms but unambiguous, which is its virtue. Best for: clients who prefer calendar dates to day-counts.
12. Recurring / retainer terms
"£1,500 billed on the 1st of each month, payable within 7 days." Retainers deserve their own terms: fixed billing date, short payment window, and a clear statement of what happens if payment lapses (work pauses). Automatic or direct-debit collection is ideal here — the best payment term is one the client never has to think about. Best for: ongoing retainer relationships.
How to choose terms for your business
Start from your cash flow, not from tradition. Ask: how long can I comfortably wait for this money? A freelancer with three months of expenses saved can offer Net 30 without stress; one living invoice-to-invoice should be on Net 7 or deposits.
Then consider the client. A two-person startup pays differently from a 500-person company with a finance department. Big companies often can't pay faster than Net 30 due to their processes — fighting that is wasted energy; instead, invoice them the day the work is done so the 30-day clock starts immediately.
Match terms to project size. Small jobs: due on receipt or Net 7. Medium projects: Net 14 or 50% deposit. Large projects: staged milestones. Retainers: fixed monthly date, short window.
And whatever you choose, put it in the contract before work starts, then repeat it on the invoice. Terms a client sees for the first time on the invoice are terms they'll argue about.
How to write payment terms on an invoice
Keep it to one or two plain sentences near the total:
- "Payment due within 14 days of the invoice date (due 20 October 2026)."
- "50% deposit (£750) due before work begins; balance due on delivery."
- "Early payment discount: 2% if paid within 10 days."
Always include the actual calendar due date alongside the term — "Net 14 (due 20 October 2026)" beats "Net 14" alone, because it removes all arithmetic and all excuses. If you charge late fees, reference them in the same line: "Late payments accrue interest at 1.5% per month, per our agreement of 1 October." (See our guide to late fees on invoices for what you can legally charge.)
Our free invoice generator includes a payment-terms field and calculates the due date for you — one less thing to get wrong.
When clients ignore your terms
Terms only work if you enforce them. The day after the due date passes, the invoice is overdue — send a polite reminder that day, not three weeks later. A short, friendly nudge referencing the agreed terms ("Just a reminder that invoice INV-042 was due yesterday under our Net 14 terms") resolves most cases immediately.
If reminders don't work, escalate on a schedule: gentle nudge → firm reminder → final notice → formal action. Our chasing guide lays out the full sequence. The pattern to avoid is stating Net 14 and then silently accepting 60 days — every unenforced deadline teaches the client that your terms are decorative.
Frequently asked questions
What are the best payment terms for a freelancer?
Net 14 with a 50% deposit on larger projects is the best default for most freelancers — fast enough for healthy cash flow, reasonable enough that clients accept it without argument. Adjust based on your cash reserves and client type.
What does Net 30 mean on an invoice?
Net 30 means the full payment is due 30 calendar days after the invoice date. "Net" always counts from the invoice date (not from when the client reads it), so invoice promptly — every day you delay invoicing is a day added to your wait.
Should I offer a discount for early payment?
It can work well on larger invoices: 2/10 Net 30 (2% off if paid within 10 days) motivates finance departments to pay you first. The cost is small relative to the cash-flow benefit. Skip it on small invoices where the admin isn't worth it.
Can I require payment before starting work?
Yes — deposits and upfront payments are standard practice for freelancers, especially on project work. 30–50% upfront is normal; 100% upfront is common for small fixed-price jobs. State it in your contract, not just on the invoice.
What happens if a client never agrees to my payment terms?
Then you have no agreed due date, which makes chasing much harder. In the UK, the law implies a 30-day term for business debts even without agreement — but everywhere else, get terms in writing before starting work. No agreed terms is a red flag about the client.