Payment terms tell the client when payment is due. Getting them right protects your cash flow, reduces awkward conversations, and gives you solid ground to stand on if an invoice goes overdue.
Know the common terms
- Due on receipt — payment expected as soon as the invoice arrives. Good for small one-off jobs or trusted long-term clients.
- Net 7 / Net 14 / Net 30 — payment due that many days after the invoice date. Net 14 is increasingly common for freelancers. Net 30 is standard in corporate settings.
- 50% upfront, 50% on completion — the client pays a deposit before the work starts. Reduces risk for both sides on larger projects.
- Milestone payments — payment tied to agreed project stages. Useful for long engagements where a single end invoice would be too large.
Choose the right terms for the job
There's no universal answer. A sensible default for most freelancers: Net 14 for standard jobs, 50% deposit for anything over a significant amount. Tighten your terms for new clients you haven't worked with before. Loosen them for long-standing clients with a good track record.
Ask yourself: if this invoice went unpaid for 60 days, would it cause a cash flow problem? If yes, use a deposit.
Agree terms before the work starts
Payment terms should be on your quote, not just your invoice. If a client approves a quote that states Net 14 with a 50% deposit, that's the agreed arrangement. Introducing new terms on the invoice after the work is done is harder to enforce.
Write terms in plain language. "Payment due within 14 days of invoice date" is clearer than "Net 14 EOM" — and less likely to be questioned.
Set your defaults in Invoicetastic
Go to Settings → Invoice defaults and set the payment terms that apply to most of your invoices. New invoices will pre-fill with these terms automatically. You can override them on any individual invoice when a specific job needs different arrangements.
Know your late payment rights
Most countries give businesses the right to charge interest on overdue B2B invoices. The specifics vary:
- UK: the Late Payment of Commercial Debts (Interest) Act 1998 allows 8% above the Bank of England base rate, plus fixed debt recovery costs
- Australia: late payment rights are governed by contract unless you're dealing with a large business under the Payment Times Reporting Act
- Canada: governed by contract and provincial rules — include your interest rate in your standard terms
- US: no federal standard — governed by contract and state law; include a rate in your terms if you want to enforce it
Whether you enforce these rights is your call. But including a note on your invoices signals that you take payment seriously — and that alone often speeds things up.
The one habit that gets invoices paid faster
Send a short, friendly message the day before payment is due. Not a chase — just a confirmation. "INV-0042 for £850 is due tomorrow — let me know if there are any questions." It removes friction, reminds the client without pressure, and cuts the number of invoices that slip past their due date.
Set terms before the work. Enforce them with records.
Clear terms on the quote, repeated on the invoice, with the due date visible at a glance — that's the setup that gets you paid on time.
Invoicetastic Learn is general information only. It is not legal, tax, accounting, or financial advice, and Invoicetastic is not liable for decisions made from this content. Always check current rules with the relevant authority or a qualified professional.