Invoicing Basics
Invoice Payment Terms Explained (Net 15, Net 30)
What are invoice payment terms? Payment terms tell your client when payment is due and sometimes what happens if it is late. Terms such as Net 15, Net 30, or due on receipt appear on the invoice so both sides know the deadline. Choosing clear terms helps you get paid on time and avoids disputes.
Common Invoice Payment Terms
| Term | Meaning | Typical use |
|---|---|---|
| Due on receipt | Payment is due as soon as the invoice is received | Small jobs, new clients, one-off work |
| Net 7 | Payment due within 7 days of the invoice date | Freelancers who want fast payment |
| Net 15 | Payment due within 15 days | Small projects and regular clients |
| Net 30 | Payment due within 30 days | Companies and larger clients |
| Net 60 | Payment due within 60 days | Large organizations with long approval cycles |
What Does Net 30 Mean on an Invoice?
Net 30 means the full invoice amount is due within 30 days of the invoice date. If you issue an invoice on 1 March with Net 30 terms, payment is due by 31 March. The same logic applies to Net 15 or Net 60.
How to Choose the Right Payment Terms
- Consider your cash flow: shorter terms mean faster payment.
- Check the client's process: larger companies often pay on Net 30 or longer.
- Use shorter terms or deposits for new clients.
- Agree on the terms before work starts, ideally in writing.
How to Write Payment Terms on an Invoice
Put the terms and the exact due date near the total, for example: "Payment terms: Net 14. Due date: 21 March 2026." Adding the specific date removes any doubt about when the 14 days end. Add your payment methods below it.
Late Payment Fees and Early Payment Discounts
Some businesses add a late fee, such as a percentage per month, or offer a small discount for early payment. If you use either, state it clearly on the invoice and in your agreement, and check local rules on late fees. Keep it simple if you are just starting out.
Frequently Asked Questions
What are the most common invoice payment terms?
Due on receipt, Net 7, Net 15, and Net 30 are the most common, with Net 30 being especially standard when invoicing companies.
Should I put the due date as well as the terms?
Yes. Showing both the term and the exact due date is clearest, and it gives you a firm date to reference in follow-ups.
Can I change payment terms for one client?
Yes, as long as both sides agree. Update the terms on that client's invoices and record the agreement.
Add Payment Terms to Your Invoice
Our free invoice generator lets you set the invoice date, due date, and payment terms in the notes, then download a PDF. For everything else an invoice needs, read what should be included on an invoice, and see how terms fit into the freelance invoicing process.