Invoice payment terms explained
Payment terms are the short phrase on an invoice that says when you expect to be paid. Choosing the right one, and writing it clearly, has a real effect on how quickly money reaches your account.
Invoicing · Published 2026-10-07
The most common payment terms
- Due on receipt: payment is expected as soon as the client receives the invoice. In practice most clients pay within a few days.
- Net 7, Net 14, Net 30, Net 60: payment is due 7, 14, 30 or 60 days after the invoice date. Net 30 is the most common term between businesses.
- EOM (end of month): payment is due at the end of the month in which the invoice is dated. Net 30 EOM means 30 days after the end of that month.
- 2/10 Net 30: the client may take a 2% discount if they pay within 10 days; otherwise the full amount is due in 30 days.
- CIA or CWO (cash in advance, cash with order): payment before any work starts. Common for small one-off jobs and new clients.
- Milestone or stage payments: a share of the total is due at agreed points, for example 50% upfront and 50% on delivery.
Which terms should you choose?
For freelancers and very small businesses, shorter is better. Cash flow matters more to you than to a large client, and there is rarely a good reason to offer 60 days. Net 14 or Due on receipt is normal for individual clients and small businesses.
Large companies often have fixed supplier terms, commonly Net 30 to Net 60, and their systems will pay on that schedule no matter what your invoice says. In that case, agree the terms before you start work and write them in the contract, so the invoice simply confirms what was already agreed.
For long projects, avoid one large invoice at the end. Ask for a deposit (30 to 50% is common) and bill the rest at milestones. If a project is cancelled halfway, you have still been paid for the work done.
Always write the actual due date
Net 30 requires the reader to count. A due date such as Due: 6 November 2026 does not. Put both on the invoice: the term in words and the calendar date. It removes any argument about whether the 30 days started when you sent the invoice or when someone opened it.
Early payment discounts and late fees
A small discount for fast payment, such as 2/10 Net 30, can work well with clients who have the cash and like saving money. It costs you 2% of the invoice, so it only makes sense if getting paid three weeks earlier is worth more than that to you.
Late fees are the other side. Many freelancers state a late fee in their contract, for example a fixed fee or a monthly interest rate on overdue amounts. Check what is allowed where you work. In the UK, for example, the Late Payment of Commercial Debts (Interest) Act lets businesses claim statutory interest of 8% above the Bank of England base rate on late business-to-business payments. Other countries have different rules, and some limit the interest you can charge consumers.
Whatever you choose, a late fee works best when it is in the contract and mentioned on the invoice. Adding a surprise charge after the fact damages the relationship and is often unenforceable.
Practical ways to get paid faster
- Invoice immediately when the work is delivered, not at the end of the month.
- Send it to the right person: ask who handles supplier invoices and copy your main contact.
- Include every payment detail the client needs, so nobody has to email you for your bank details.
- Offer a payment method that suits the client, such as a bank transfer for companies or a card link for individuals.
- Send a friendly reminder a few days before the due date, not only after it has passed.
Setting terms in Zonlet
In Zonlet's invoice generator, pick a due date and add your terms and payment instructions in the notes field, for example Payment terms: Net 14. Bank transfer to the account below. The PDF shows the due date clearly at the top, so your client sees it straight away.
Create an invoice with a due date