Payment terms tell your client when and how they need to pay your invoice. Choosing the right terms can significantly impact your cash flow. Here's what each common payment term means and when to use it.

Common Payment Terms

Due on Receipt

Payment is expected immediately when the invoice is received. This is the most aggressive term and works well for:

Small, one-off projects
New clients without an established relationship
Services already delivered

Net 7

Payment due within 7 days. A good middle ground that gives clients a small buffer while keeping your cash flow tight.

Net 15

Payment due within 15 days. Popular among freelancers and small agencies. It's professional but doesn't make you wait an entire month.

Net 30

Payment due within 30 days. The most common payment term in business. Standard for corporate clients and agencies. However, in practice, Net 30 often means getting paid in 35-45 days once you account for processing time.

Net 60 / Net 90

Payment due within 60 or 90 days. Used by large corporations and government contracts. Avoid these if possible — they can seriously hurt your cash flow as a freelancer.

Which Payment Terms Should You Use?

Situation	Recommended Terms
New client, small project	Due on Receipt or Net 7
Ongoing freelance work	Net 15
Corporate client	Net 30
Large project (staged payments)	50% upfront, 50% Net 15

Pro Tips for Better Payment Terms

Set terms before starting work. Agree on payment terms in your contract or proposal, not after.
Offer early payment discounts. "2/10 Net 30" means 2% discount if paid within 10 days, otherwise full amount due in 30 days.
Charge late fees. Include a clause for late payment interest (e.g., 1.5% per month). This is legal in most jurisdictions.
Request deposits for large projects. 30-50% upfront protects you from non-payment.

Ready to set your payment terms? Create an invoice with InvoiceForge — our form includes all standard payment term options.

Invoice Payment Terms Explained: Net 30, Due on Receipt & More