Invoice Payment Terms Explained: Net 30, Deposits & Getting Paid on Time
'Net 30' is the most misunderstood phrase in freelancing. Here's what invoice payment terms actually mean, which ones to use, and how to write terms that get you paid on time.
The common terms, translated
- Due on receipt — pay immediately. Best for small jobs and new clients.
- Net 7 / Net 15 — due 7 or 15 days after the invoice date. The freelancer sweet spot: professional without being pushy.
- Net 30 — due in 30 days. The corporate standard; expect it from larger clients whether you ask or not.
- 50% upfront — half before work starts, half on delivery. Standard for project work over ~$1,000.
- Milestone-based — 30/30/40 or similar splits tied to deliverables. Best for multi-week projects.
Which terms should you use?
Match the term to the risk. New client? Due on receipt or 50% deposit. Trusted long-term client? Net 15 keeps cash flowing. Big corporation? You'll get Net 30 regardless — build it into your pricing instead of fighting it.
Always write the actual due date on the invoice ('Due: March 14, 2026'), not just 'Net 15'. A calendar date removes all ambiguity about when the clock started.
Writing terms that actually work
Two sentences that belong on every invoice: how to pay ('Bank transfer to … / PayPal to …') and what happens if payment is late ('Balances overdue by 30+ days incur a 1.5% monthly fee').
Written terms are enforceable; verbal ones aren't. And counterintuitively, invoices with clear late-fee policies get paid faster — nobody wants to be the client who triggered the fee clause.
Put it into practice — free
Billia's invoice generator applies everything on this page automatically: numbering, totals, tax, and a clean PDF.
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