Invoice Payment Terms Explained (Net 7, Net 15, Net 30 & More)

Invoice payment terms are one of the most misunderstood parts of freelancing.

If you've ever sent an invoice and then wondered "When exactly should I expect to get paid?", this guide is for you.

Below, we break down the most common invoice payment terms, what they mean, and how to use advanced terms to get paid faster.

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What Are Invoice Payment Terms?

Invoice payment terms define how long a client has to pay you after receiving an invoice.

They set expectations, reduce confusion, and give you leverage if payment is late.

Without clear payment terms, clients will usually default to their timeline — not yours.

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Common Invoice Payment Terms Explained

Net 7

Payment is due 7 days after the invoice date.

Best for:

• Small projects
• Short-term work
• Clients you trust

Net 15

Payment is due 15 days after the invoice date.

Best for:

• Ongoing freelance work
• Agencies
• Mid-sized clients

Net 30

Payment is due 30 days after the invoice date.

Best for:

• Corporate clients
• Enterprises
• Companies with accounting departments

Due on Receipt

Payment is expected immediately when the invoice is received.

Best for:

• One-off work
• Deposits
• Small, fast transactions

⚠️ Be careful: Many clients need internal approval before paying. Using "Due on Receipt" can cause friction if expectations aren't aligned.

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Invoice Payment Terms Comparison

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Which Payment Terms Should You Use?

There's no universal "best" option.

• Freelancers → Net 7 or Net 15
• Agencies → Net 15
• Enterprise clients → Net 30
• Deposits → Due on Receipt

The key is consistency. Switching terms mid-project creates confusion and delays.

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Advanced Strategies: Discounts & Late Fees

If you want to optimize your cash flow further, you can move beyond standard Net terms.

Early Payment Discounts (2/10 Net 30)

Offering discounts for fast payment can incentivize clients to skip their usual 30-day wait.

Common terms:

• 2/10 Net 30: The client gets a 2% discount if they pay within 10 days; otherwise, the full amount is due in 30 days.
• 1/5 Net 15: A 1% discount if paid within 5 days.

Is it worth it? A 2% discount might seem small, but getting cash 20 days early can be a lifesaver for cash flow.

Late Payment Fees

You can (and often should) charge late fees, but you must be transparent about them.

Rules for late fees:

1. Disclose them upfront: Include late fee terms on every invoice (e.g., in the footer).
2. Keep them reasonable: 1.5% per month is standard.
3. Enforce consistently: Don't charge some clients and not others.
   
   

Example language for your invoice:

"A late fee of 1.5% per month will be applied to balances remaining after 30 days."

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What Happens If a Client Pays Late?

Clear payment terms give you the right to follow up — professionally.

If you're unsure how to do that without sounding aggressive, read our guide: 👉 How to Politely Ask for Payment

If payment keeps getting delayed, this escalation plan helps: 👉 Client Won't Pay? An Escalation Plan for Freelancers

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Final Tip

Your payment terms only work if your invoice looks professional.

If you're still sending invoices manually or inconsistently, this guide will help: 👉 How to Create a Professional Invoice

If a client pays in installments against a single invoice, see Partial Payments on Invoices for how to track what's paid and what's still owed.

Clear terms. Clean invoices. Faster payments.

BillerBear lets you set Net 7, Net 15, Net 30, or custom due dates directly on each invoice, with automated payment reminders that follow up for you. Create your first invoice free.