Invoice payment terms explained
"Payment terms" tell your client when payment is due. The most common are Net 30, Net 15, Net 7, and due on receipt — here's what each means, and which one actually gets you paid fastest.
The common terms at a glance
| Term | Means | Best for |
|---|---|---|
| Due on receipt | Pay immediately when the invoice arrives | Small jobs, new clients, fast cash flow |
| Net 7 | Pay within 7 days of the invoice date | Freelancers who want to get paid quickly |
| Net 15 | Pay within 15 days | A reasonable default for most small businesses |
| Net 30 | Pay within 30 days | Larger clients/corporations who require it |
The catch with Net 30
"Net 30" often means clients pay on day 30 at the earliest — and with weekends, approval steps, and processing, you might not see the money for 35–45 days. For freelancers and small businesses with fewer clients and tighter cash flow, longer terms are a real burden. Unless a big client requires Net 30, shorter terms (Net 7–15) get you paid weeks sooner.
How to set terms that get paid
- Put the due date on the invoice — "Due by [date]" is clearer than "Net 15".
- Ask for a deposit (30–50% upfront) on bigger jobs.
- Add a late fee in writing so terms have teeth — see how to charge late fees.
- Follow up consistently — terms only work if you enforce them.
Set terms once — let PaidPilot enforce them
Create an invoice with clear due dates free, then PaidPilot tracks it and sends polite reminders automatically until you're paid.
Try PaidPilot free →Frequently asked questions
What does Net 30 mean on an invoice?
Net 30 means the client has 30 calendar days from the invoice date to pay the full amount.
What's the difference between Net 15 and due on receipt?
Net 15 gives the client 15 days to pay; due on receipt means payment is expected immediately when they get the invoice.
What payment terms should a freelancer use?
Net 7 to Net 15 (or a deposit + due on receipt) usually works best — shorter terms get you paid sooner and reduce the risk of late payment.
Can I change payment terms after sending an invoice?
Yes, by agreement — but it's best to set clear terms before work starts and state them on the invoice and in your contract.