Invoice Payment Terms Explained (Net 30, Due on Receipt, and More)

What payment terms are

Payment terms are simply when you expect to be paid, written on the invoice. They are not just jargon. The terms you choose have a real effect on how fast the money arrives, so it is worth knowing the common ones and picking on purpose.

The common terms

• Due on receipt: pay now. Fastest, best for small jobs and new clients.
• Net 7, Net 15, Net 30: payment due in that many days. Net 30 is common for businesses but slow for a solo operator.
• 50 percent upfront: a deposit, with the balance on completion.
• Milestone or progress billing: payments tied to stages of a big job.

Which to use

Shorter is better for cash flow. For most freelancers and trades, due on receipt or a short Net 7 plus a deposit beats Net 30, which just means waiting a month to be paid. Only offer longer terms when a client genuinely requires them and the work is worth it.

Put the terms where they are seen

Terms only work if the client sees them, clearly, on the invoice. Our free invoice generator lets you set the due date and note your terms right on the document, free and no signup.