Getting paid
Payment terms
Payment terms are the conditions on an invoice that state when payment is due and how it should be made — for example "Net 30" or "Due on receipt."
What payment terms cover
Payment terms set expectations for when an invoice must be paid, what methods are accepted, and any penalties or discounts that apply. They protect your cash flow and prevent disputes by making the deadline explicit before work begins.
Terms are usually agreed up front — in a contract, proposal, or estimate — and then restated on every invoice so there’s no ambiguity.
Common payment terms
"Due on receipt" means pay immediately. "Net 15," "Net 30," and "Net 60" give the client 15, 30, or 60 days from the invoice date. "2/10 Net 30" offers a 2% discount if paid within 10 days, otherwise the full amount is due in 30. "50% upfront" requires a deposit before work starts.
For freelancers and small service businesses, shorter terms (Net 15 or Due on receipt) plus a deposit are usually the healthiest choice for cash flow.
Example: A copywriter’s invoice reads "50% deposit due on receipt, balance Net 15." She collects half before writing and the rest within two weeks of delivery.
FAQs
Frequently asked questions
What does Net 30 mean?
Net 30 means the full invoice amount is due within 30 days of the invoice date.
What are the best payment terms for freelancers?
Shorter terms protect cash flow. Many freelancers use Net 15 or Due on receipt, often combined with a deposit (such as 50% upfront) for larger projects.
Related terms
Net 30
Net 30 is a payment term that means the full invoice balance is due within 30 days of the invoice date.
Due on receipt
"Due on receipt" is a payment term meaning the client is expected to pay the invoice immediately upon receiving it, rather than within a set number of days.
Invoice payment
An invoice payment is the funds a buyer sends to a seller to settle the amount owed on an invoice, by or before its due date.
Past-due invoice
A past-due invoice is an invoice that has not been paid by its due date, making the balance overdue.
Put it into practice
WaffleInvoice lets you create branded invoices, set payment terms, collect payments online, and automate reminders — free for unlimited invoices.
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