Invoice Payment Terms Explained (Net 15, Net 30, Due on Receipt)

Payment terms tell your client when payment is due. Picking the right ones - and stating them clearly - is one of the simplest ways to get paid faster.

The common terms

• Due on receipt - payment is expected immediately
• Net 7 - due within 7 days of the invoice date
• Net 15 - due within 15 days
• Net 30 - due within 30 days (common with larger companies)
• Net 60 - due within 60 days (large clients; hard on freelancer cash flow)

Which should a freelancer use?

Shorter terms get you paid sooner, so default to Net 7 or Net 14 unless a client requires Net 30. Always put a specific calendar due date on the invoice, not just "Net 30" - it removes ambiguity and gives you a clear date to follow up on.

Encourage on-time payment

• State the due date prominently
• Add a late fee policy up front (e.g. 2% after 14 days)
• Offer easy payment methods
• Send a reminder before and after the due date

Set it and forget it

InvoiceApp lets you set due dates and a late-fee policy, then sends the reminders automatically. Create an invoice free with the invoice generator, or start a free trial for automatic tracking.