Invoice Payment Terms Explained: Net 30, Net 60, Due on Receipt & More
You send an invoice. The client receives it. Then... nothing happens for weeks. Sound familiar?
One of the biggest reasons freelancers and small businesses struggle with late payments is unclear payment terms. If you don't state exactly when payment is due, clients will pay on their own schedule—not yours.
In this guide, we'll explain the most common invoice payment terms, when to use each one, and how to set expectations that actually get you paid on time.
What Are Invoice Payment Terms?
Payment terms tell your client:
- When payment is due
- How they should pay
- What happens if they pay late
Think of payment terms as the rules of the transaction. Without them, you're relying on the client's goodwill (and memory) to pay you.
Common Payment Terms (and What They Mean)
Due on Receipt
Meaning: Payment is due immediately when the client receives the invoice.
When to use it:
- One-time projects with new clients
- Small invoices (under $500)
- Service calls or quick turnarounds
- When you need cash flow immediately
Example: "Payment due on receipt."
Pro Tip: This works best for smaller jobs or when you've been burned by slow-paying clients before. For larger projects or ongoing relationships, "Due on receipt" can feel too aggressive.
Net 7
Meaning: Payment is due within 7 days of the invoice date.
When to use it:
- Quick projects
- Clients you trust but want to keep timelines short
- Invoices under $1,000
Example: "Payment due within 7 days (by January 17, 2026)."
Pro Tip: Net 7 is a good middle ground. It gives clients a few days to process the invoice without dragging payment out for weeks.
Net 14
Meaning: Payment is due within 14 days of the invoice date.
When to use it:
- Ongoing freelance relationships
- Mid-sized invoices ($1,000–$5,000)
- Clients with accounting departments that need time to process
Example: "Payment due within 14 days (by January 24, 2026)."
Pro Tip: Net 14 is the sweet spot for many freelancers. It's professional, reasonable, and not too long.
Net 30
Meaning: Payment is due within 30 days of the invoice date.
When to use it:
- Corporate clients or agencies
- Large invoices (over $5,000)
- Retainer agreements
- Ongoing business relationships
Example: "Payment due within 30 days (by February 9, 2026)."
Pro Tip: Net 30 is the standard for many businesses, especially larger companies. If you're working with a corporate client, they'll often expect Net 30 by default.
Net 60 or Net 90
Meaning: Payment is due within 60 or 90 days.
When to use it:
- Very large projects with established clients
- Government contracts
- International clients with complex payment processes
Example: "Payment due within 60 days (by March 11, 2026)."
Warning: Only use Net 60 or Net 90 if you have strong cash flow and trust the client. Waiting 2–3 months for payment is risky for most freelancers.
50% Upfront, 50% on Completion
Meaning: The client pays half before you start and half when the work is done.
When to use it:
- New clients you haven't worked with before
- Large or time-intensive projects
- High-risk industries or clients with payment history issues
Example: "50% deposit due before project start. Remaining 50% due upon delivery."
Pro Tip: Deposits protect you. If the client ghosts you mid-project, you've at least covered some of your time.
How to Set Clear Payment Terms (Step-by-Step)
Step 1: Decide Your Terms Before You Start
Don't wait until the invoice stage to think about payment. Agree on terms in your contract or proposal before the work begins.
Step 2: State Terms Clearly on Every Invoice
Include your payment terms in a visible spot on the invoice:
- "Payment due within 14 days of invoice date"
- "Net 30: Payment due by February 9, 2026"
Don't make clients hunt for this information.
Step 3: Add Late Fee Language (Optional but Recommended)
If you want to charge late fees, say so upfront:
- "A 2% monthly late fee applies to invoices not paid within 30 days."
- "Invoices overdue by more than 15 days are subject to a $50 late fee."
Check your local laws—some regions have limits on late fees.
Step 4: Include Payment Instructions
Make it easy for the client to pay:
- Bank account details
- Payment links (PayPal, Stripe, Wise)
- Mailing address for checks
The harder it is to pay, the longer it takes.
What to Do When Clients Ignore Your Terms
1. Send a Friendly Reminder (Day 1 After Due Date)
Most late payments aren't intentional. Send a polite email:
"Hi [Client Name], just checking in—Invoice #123 was due on [date]. Let me know if you need a copy or have any questions. Thanks!"
2. Follow Up Firmly (Day 7 After Due Date)
If they don't respond, be more direct:
"Hi [Client Name], Invoice #123 is now 7 days overdue. Can you confirm when payment will be processed? Thanks."
3. Apply Late Fees (If Stated on Invoice)
If you included late fee language, apply it. Send an updated invoice showing the late fee.
4. Pause Future Work
If a client is consistently late, stop starting new work until past invoices are paid.
5. Consider Small Claims Court (Last Resort)
For large unpaid invoices, small claims court is an option. Keep all records: contracts, invoices, emails.
Pro Tips for Getting Paid on Time
Shorten your terms for new clients: Start with Net 7 or Net 14 until you build trust. You can extend to Net 30 later.
Require deposits for big projects: 50% upfront protects you if the client disappears.
Send invoices immediately: The faster you invoice, the faster you get paid. Don't wait weeks after finishing the work.
Use consistent terms: If you always use Net 14, clients will know what to expect. Changing terms randomly looks unprofessional.
Offer early payment discounts: "2% discount if paid within 5 days" can motivate clients to pay faster.
How QuickInvoiceTool Helps
When you create an invoice at quickinvoicetool.com, you can add your payment terms, due dates, and late fee policies directly on the invoice. The tool automatically calculates due dates based on your selected terms, so clients see exactly when payment is expected. No signup required—just build your invoice, preview it, and download a professional PDF.
Frequently Asked Questions
Q: What payment terms should I use as a new freelancer?
Start with Net 14 for most clients. It's professional and not too long. For new or risky clients, use Due on Receipt or 50% upfront.
Q: Can I change payment terms mid-project?
Only if you and the client agree in writing. Don't surprise a client with new terms on an invoice—it damages trust.
Q: What if a client asks for Net 60 or Net 90?
You can agree, but make sure your cash flow can handle it. Consider asking for a deposit or milestone payments instead.
Q: Are late fees legal?
In most places, yes—but check your local laws. Some regions limit the percentage you can charge.
Q: Should I charge interest on late invoices?
You can, but only if it's stated on the invoice before it's overdue. A common rate is 1.5%–2% per month.
