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.
Related definitions
Payment terms · Net 30 · Deposit · Late fee
Put it into practice — free
Billia's invoice generator applies everything on this page automatically: numbering, totals, tax, and a clean PDF.
Create my invoice — freeFrequently asked questions
What does Net 30 actually mean?
Payment is due 30 days after the invoice date. Net 15 and Net 60 work the same way with 15 and 60 days. Always pair the term with a concrete calendar date so there's no ambiguity.
Should I ask for a deposit before starting work?
For large, custom, or material-heavy jobs, yes — 30–50% upfront is standard in most trades. Deposits filter out non-serious clients and cover your out-of-pocket costs.
Can I charge a late fee on overdue invoices?
Yes, as long as the fee was stated on the invoice or in your contract before the work started. A typical structure is 1–1.5% per month on overdue balances.
Is 'due on receipt' too aggressive?
For small jobs and first-time clients it's perfectly fine — it means pay now. For larger projects, give 7–14 days. Match the term to the relationship and the invoice size.