Invoice payment terms: what to use and how to write them

Invoice payment terms are the part of an invoice that says when you expect to be paid and how. For a small job, the safest default is due on receipt for a deposit and Net 7 to Net 15 for the final invoice. Accept Net 30 only when a bigger client requires it, and always print the real due date next to the term. This guide explains each term, shows how to choose, and gives wording you can paste.

What are invoice payment terms?

Invoice payment terms are the conditions for payment printed on an invoice: the due date, the payment method, and anything that changes the amount, such as a deposit or an early-payment discount. They are usually agreed in your freelance contract or quote first and repeated on every invoice, so the client never meets them for the first time at payment.

What do Net 7, Net 15, Net 30 and "due on receipt" mean?

"Net X" means the full payment is due within X calendar days of the invoice date. "Due upon receipt" means payment is expected immediately, or as soon as the client receives the invoice, according to Xero's guide to invoice payment terms. Here is how each one looks on a real calendar for an invoice dated October 1:

Two details cause most of the confusion. The clock starts on the invoice date, not the day the client opens the email or approves the work, so send the invoice the day the work is approved. And terms count calendar days, not business days.

Which payment term should I use?

Use the shortest term your client will accept, and let the size of the job and the client decide. Invoicing sites that publish guidance for freelancers broadly agree on the shape, though they are software sellers and the exact numbers differ. Plutio's guide, for example, suggests due on receipt for small one-off projects, Net 7 for established monthly retainers and Net 15 as the general default, treating Net 30 as something to accept only when an enterprise client requires it.

A simple rule you can follow:

Longer terms are not free for you. When a client takes 60 days, you are lending them your money for two months. If you must accept Net 60, consider billing in smaller milestones so less is outstanding at once, or pricing the delay into your rate. How long brands take to pay UGC creators shows what that looks like in practice, and Xero reports that average time to be paid across US states ranged from about 25 to about 37 days in its June 2026 quarter data.

How do I write payment terms on an invoice?

Put the term and the actual date in the same line, plus how to pay. A term with no date invites arguments, because "Net 30" counted from the wrong day is a common excuse. The same terms belong in your statement of work before the job starts. Copy one of these:

• Deposit: "Due on receipt. Work starts once this deposit is paid."
• Final invoice: "Net 14. Payment due October 15, 2026. Pay by card using the link below."
• Retainer: "Net 7. Payment due on the 8th of each month for the period starting the 1st."
• Large client: "Net 30. Payment due November 14, 2026. Please send to accounts payable at the address on this invoice."

Also check the rest of the invoice: a unique invoice number, the client's legal company name and any purchase order number the client's accounts team needs. What goes on a freelance invoice has the full list and an example.

Should I ask for a deposit or offer an early-payment discount?

A deposit protects you more than any term. A deposit needs its own real invoice; a proforma invoice is only an estimate and cannot collect it. Cash in advance means payment is required before work begins, and a deposit is the part-payment version of that. Plutio suggests 50% up front for new clients and 25% for established ones. Treat those as starting points, not rules, and agree the percentage in writing.

An early-payment discount such as "2/10 Net 30" means a 2% discount if the invoice is paid within 10 days, otherwise the full amount is due in 30 days (Xero). It can speed up a large client who has the cash but waits for the deadline. On a small invoice the discount is a few dollars and rarely changes behavior, so most freelancers skip it.

What if the client pays late anyway?

Send a short reminder the day after the due date, then follow the steps in the overdue invoice email sequence. Terms only help if you follow up on them. If you want a late fee, agree it in writing before the work starts, because adding one afterwards to an invoice the client already accepted is hard to defend. Rules on late fees and interest vary by place, so check yours. This isn't legal advice, and a lawyer should look at big deals.

Checklist before you send

• The term and the exact due date are both on the invoice
• The deposit invoice was sent and paid before work started
• The invoice goes to the person who pays, with the PO number if they need one
• The payment link or bank details are on the invoice itself
• You wrote down the day you will follow up if it is not paid