Common payment terms
Due on receipt
Payment is expected immediately upon receiving the invoice. Best for one-off jobs, small amounts, or new clients you have not worked with before.
Net 7 / Net 14 / Net 30 / Net 60
Payment is due within the specified number of days from the invoice date. Net 30 is the most common standard in the US. The shorter the net period, the sooner you get paid — most freelancers do better with Net 14 than Net 30.
2/10 Net 30
The client gets a 2% discount if they pay within 10 days, otherwise the full amount is due within 30 days. This is an early-payment incentive — useful if improving cash flow is worth a small discount to you.
End of month (EOM)
Payment is due by the last day of the month in which the invoice was issued. For example, an invoice issued on 12 July is due by 31 July. Simple to remember and common in some industries.
Net EOM 30
Payment is due 30 days after the end of the month in which the invoice was issued. Slower than most other terms — avoid unless the client insists.
Milestone or stage payments
For large projects, you split the total into payments tied to milestones: for example, 50% upfront, 25% at mid-project, 25% on delivery. Reduces risk for both parties.
Which terms should you use?
Consider these factors:
- Your cash flow needs. If you have bills to pay, shorter terms protect you.
- The client's size. Large corporations often impose their own standard terms (frequently Net 30 or Net 60). You may not have much room to negotiate.
- Your relationship with the client. Trusted long-term clients can be trusted with Net 30. New clients should start on shorter terms.
- Industry norms. Some sectors (construction, publishing) have entrenched conventions. Know your market.
Late payment fees
You can add a late payment clause to your invoices — for example, 1.5% per month on overdue balances. State this clearly on the invoice itself. Whether you enforce it is up to you, but having it in writing strengthens your position.