Payment terms tell your client when and how to pay. The most common are “Due on receipt”, “Net 15” and “Net 30”, meaning payment within that many days of the invoice date. Choosing the right terms, and writing them clearly, is one of the simplest ways to get paid on time.
Payment terms are the conditions you set for payment: how many days the client has, what methods you accept, and sometimes what happens if they pay early or late. They belong in two places: your contract or quote, agreed before the work starts, and the invoice itself, as a reminder.
The single most useful thing you can do is pair your terms with an actual due date. “Net 30” asks the client to do maths; “Due 14 November” doesn’t. Writing both removes any doubt.
These shorthand terms are widely understood by accounts teams around the world, though it’s still worth spelling them out for smaller clients.
For bigger projects, waiting until the end to invoice everything puts all the risk on you. Splitting payment protects your cash flow and filters out clients who aren’t serious.
A deposit is a share of the fee paid before you begin, often somewhere between a quarter and a half for new clients. Milestone billing splits the rest across agreed stages, such as design approval, first draft and final delivery, with an invoice for each. A proforma invoice is handy for requesting a deposit before the real invoice is issued.
Whatever split you choose, agree it in writing first and reference it on each invoice so the client can see where they are in the plan.
Invoice 1: 40% deposit, due on receipt, before work begins Invoice 2: 30% on design approval, Net 7 Invoice 3: 30% on final delivery, Net 7
Shorter terms get you paid faster, but they have to be realistic for the client. A sole trader can usually pay in a week; a large company’s accounts team may only run payments twice a month, and some insist on their own terms in their supplier contract.
A few questions help you decide:
Keep it short, specific and polite. State the due date, the terms, how to pay and the reference to use. If your contract includes late fees, mention them briefly rather than as a threat. Here are a few wordings you can adapt for the notes section of your invoice.
Payment due within 14 days of the invoice date ({due date}).
Please pay by bank transfer using invoice number {invoice number} as the reference.
Terms: Net 30. Payment is due by {due date}.
2/10 net 30: deduct 2% if paid by {date 10 days after invoice}; otherwise the full amount is due by {due date}.
This invoice covers the 40% deposit agreed in our proposal of {date}. Work begins once payment is received.
Thank you for your business. Late payments may incur charges as set out in our agreement.Many countries have rules about late payment between businesses. The UK, for example, gives businesses a statutory right to claim interest and compensation on late business-to-business debts, and EU countries have their own late-payment rules too. Rates and conditions change, so check the current rules for your country before quoting any figure on an invoice.
In practice, a friendly reminder a day or two after the due date solves most late payments. Clear terms on the original invoice make that conversation much easier, because there’s no debate about when the money was due.
If reminders don’t work, a phone call often does more than another email. Keep a record of what you sent and when, pause new work for clients who are well overdue, and get advice before taking formal action. For future jobs with that client, a deposit or shorter terms is a reasonable, non-confrontational change to make.
BillFlow has its own due date field, so the deadline prints clearly on every invoice, and a notes section where you can add your terms wording from the examples above. Add your bank details or a payment link (PayPal, Stripe, Wise and similar) and BillFlow prints a scan-to-pay QR code, which removes one more excuse for paying late.
Usually calendar days from the invoice date. If you mean something different, say so, and always show the actual due date to avoid confusion.
Large clients often have standard supplier terms, such as Net 45 or Net 60. You can negotiate, but whatever you both sign is what applies, so agree terms before starting work rather than on the invoice.
Not for small jobs, one-off clients or deposits. For larger business clients it can be unrealistic because of their payment runs, so a short term like Net 7 is often a better compromise.
Only if faster cash is worth more to you than the discount. A 2% discount for paying 20 days early is generous, so many freelancers prefer firm, short terms instead.
Similar terms work, but allow for slower cross-border transfers and state the currency clearly. A payment link can be quicker than an international bank transfer for smaller amounts.