Invoice Payment Terms Explained: Net 30, Due on Receipt & More

Payment terms tell your client exactly when and how to pay. Using the wrong terms — or no terms at all — is one of the main reasons freelancers experience delayed payments. Here is a breakdown of every common payment term and when to use each one.

Due on Receipt

Payment is expected immediately when the client receives the invoice. This is the most aggressive term and works best for small projects, one-time clients, or situations where you have already completed all work. It minimizes your risk but some clients may push back.

Net 15

Payment is due within 15 calendar days of the invoice date. This is a solid middle ground for freelancers — it gives clients enough time to process payment while keeping your cash flow relatively tight. Recommended for most freelance relationships.

Net 30

Payment is due within 30 calendar days. This is the most common business-to-business payment term. Large companies and agencies often expect Net 30 or longer. While it is standard, it means waiting up to a month for payment after delivering your work.

Net 60 / Net 90

Payment is due within 60 or 90 days. These extended terms are common with large corporations and government contracts. If you accept these terms, make sure your cash flow can handle the wait. Consider requiring a deposit upfront.

2/10 Net 30

The client receives a 2% discount if they pay within 10 days; otherwise, the full amount is due in 30 days. This incentivizes early payment. For a $5,000 invoice, the client saves $100 by paying early — a strong motivator for many businesses.

50% Upfront, 50% on Completion

Also called a milestone or split payment. You receive half before starting and half upon delivery. This is excellent for large projects and protects both parties. The client shows commitment, and you reduce your financial risk.

End of Month (EOM)

Payment is due at the end of the month in which the invoice is received. If you invoice on March 5, payment is due by March 31. This is common in retainer arrangements.

Choosing the Right Terms

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