Payment Terms That Get You Paid Faster
Net 30 is a habit inherited from large corporates. Freelancers and small studios are usually better served by Net 14 or Net 7, and writing the actual calendar date rather than the phrase removes the argument entirely. The terms you put on the invoice — and in the contract before that — are the single biggest lever you have over when you get paid.
Last updated 2026-09-17.
The due date: write the calendar date
Never write just “Net 30” or “Due in 14 days”. Write “Due date: 19 Sep 2026”. The Invoice Generator defaults to today + 14 days and shows the actual date. Reasons:
- Removes ambiguity: no argument about when the clock started.
- Finance teams enter the due date into their system — they need a date, not a calculation.
- Late-payment interest calculations (statutory or contractual) need a fixed due date.
Net 7 or Net 14 vs Net 30
Large companies pay on Net 30 because their approval chains are long. You are not a large company. Shorter terms:
- Net 7: Best for small projects, existing relationships, low-value invoices.
- Net 14: Standard for most freelance work. Gives the client two payroll cycles.
- Net 30: Only if the client insists and the project value justifies the wait.
If a client pushes for Net 30, counter with: “I can do Net 30 if you add a 2% early-payment discount for payment within 14 days.” Now the ball is in their court.
Deposits: get paid before you start
A deposit is not a favour — it is risk management. Common structures:
| Structure | When | Best for |
|---|---|---|
| 50% upfront, 50% on delivery | Contract signing / project start | Projects < GBP 5k, new clients |
| 30% upfront, 40% midpoint, 30% delivery | Signing / design approval / launch | Projects GBP 5k–GBP 20k, 4+ weeks |
| Monthly retainer (advance) | 1st of each month | Ongoing work, predictable scope |
Each milestone gets its own invoice with a sequential number. The Invoice Generator handles this naturally — just create a new invoice for each stage.
Late-payment terms: state them on the invoice
If it's not on the invoice, it's not enforceable in many jurisdictions. Put this in the “Notes & terms” field:
"Payment due within 14 days of invoice date. Late payments carry 8% annual simple interest after a 7-day grace period. A fixed administrative fee of GBP 40 applies to any overdue invoice."
This mirrors the UK statutory scheme (8% above BoE base + GBP 40–GBP 100) but works as a contractual term anywhere. Adjust the rate/fee for your jurisdiction.
Early-payment discounts
Offer a small discount for fast payment. It costs you less than chasing.
- 2% / 10 Net 30: 2% discount if paid in 10 days, otherwise full amount in 30. Classic trade term.
- 1% / 7 Net 14: 1% discount if paid in 7 days. Simpler for freelancers.
The Invoice Generator has a “Discount %” field that applies to the subtotal before tax — exactly how early-payment discounts should work.
Payment methods: make it easy
The more ways to pay, the faster you get paid. List in “Payment details”:
- Bank transfer (sort code + account / IBAN + SWIFT) — lowest fees
- Stripe / PayPal / Wise link — convenient for client, ~3% fee (build into your price)
- Card payment link — if you have Stripe, send a Payment Link
If you accept card/PayPal, the fee is a direct cost. Put it in the Margin Calculator “Cost” field so your margin stays intact.
Currency: agree in writing
Never assume. “I'll pay you in dollars” means different things to a US client (USD) and a Canadian client (CAD). The invoice generator's currency dropdown sets the symbol on the PDF — but the agreement must happen before the quote.
Purchase order numbers
Many finance teams will not pay without their PO number. Ask for it at quote stage. Enter it in the “PO or reference” field on the invoice. If they don't have one, ask for the name/email of the person who approves invoices so you can follow up directly.
Template: payment terms clause for your contract
"Payment Terms: 1. Invoices are issued on [milestone completion / monthly / weekly] and are due within 14 calendar days of the invoice date. 2. Late payments incur interest at 8% per annum (simple, 365-day year) after a 7-day grace period, plus a GBP 40 administrative fee per overdue invoice. 3. A 1% early-payment discount applies if payment is received within 7 days of the invoice date. 4. All amounts are in [GBP/USD/EUR]. Payment by bank transfer to the account details on the invoice. Card/PayPal payments accepted via link (processing fee included in quoted price). 5. Work may be paused on any account overdue by more than 30 days."
Related guides
- Late Payment Interest: Simple vs Compound, Grace Periods, and Flat Fees
- Following Up on Unpaid Invoices: Escalation Ladder
- How to Create an Invoice: Step-by-Step Guide
- Freelance Contract Essentials: What to Include Before You Start
Try the tools
- Invoice Generator — set due date, discount %, late-payment terms in notes
- Late Fee Estimator — calculate exact interest for reminders
- Margin Calculator — include payment fees in your cost base
This guide covers contractual payment terms. It is not legal advice. Enforceability varies by jurisdiction — verify with a qualified professional.