When does the Net period start?

Normally on the invoice issue date. Some contracts start it on delivery or on receipt of the invoice, so check which applies and be consistent.

Are Net 30 days working days or calendar days?

Calendar days, unless the contract says otherwise. Use the due date calculator to get the exact date.

A 2% discount if the invoice is paid within 10 days; otherwise the full amount is due within 30 days.

Can I change payment terms for an existing client?

Yes, but agree the change before you invoice under it. Terms introduced only on the invoice are weak ground in a dispute.

Should I charge a late fee?

Only if your contract provides for it. Where it does, state the rate and start date on the invoice and apply it consistently.

What terms are best for freelancers?

Net 14 for established clients, due on receipt or a deposit for new ones, is a common and defensible combination.

Guide

Invoice Payment Terms Explained

Payment terms state when an invoice must be paid and under what conditions. They are the single most consequential line on an invoice, because they decide whether you are paid this month or next.

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What are invoice payment terms?

Payment terms are the agreed conditions for settling an invoice: how many days the client has, from what date the clock starts, and any discounts or fees that apply.

Terms belong in the contract first and on the invoice second. An invoice that introduces terms the client never agreed to is a dispute waiting to happen; an invoice that restates agreed terms is simply a reminder.

What does Net 30 mean?

Net 30 means the full invoice amount is due 30 days after the invoice date. Net 15 means 15 days, Net 60 means 60 days, and so on.

The count is normally calendar days from the issue date, not working days, and not from the date the client opened the email. Some larger customers operate end-of-month terms instead, where invoices received in a month are paid a set number of days after month end — that can be considerably longer than the number suggests.

Common payment terms compared

Term	Meaning	Typical use
Due on receipt	Payable immediately	One-off jobs, new clients, small amounts
Net 7	Due 7 days from invoice date	Short engagements, fast-moving work
Net 14	Due 14 days from invoice date	Freelance and small agency work
Net 30	Due 30 days from invoice date	Standard B2B default
Net 45 / Net 60	Due 45 or 60 days from invoice date	Large corporate customers
2/10 Net 30	2% discount if paid within 10 days, otherwise due in 30	Encouraging early settlement
50% deposit, balance on completion	Half up front, remainder at delivery	Projects with material or time risk
Milestone billing	Fixed amounts at agreed stages	Long projects and construction

Choosing terms you can actually enforce

Shorter is better only if the client can comply. Many corporate finance systems run fixed payment cycles, and Net 7 against a company that pays twice a month will simply be late. Ask what their cycle is, then set terms that align to it — an invoice paid on day 30 reliably beats an invoice nominally due on day 7 and paid on day 40.

For new clients with no payment history, a deposit does more than tight terms. It tests whether the client can pay before you have committed the work.

Early-payment discounts and late fees

An early-payment discount such as 2/10 Net 30 is a conditional reduction, so do not deduct it in advance. Invoice the full amount, state the discount in the terms, and issue a credit note if the client earns it.

Late fees work the opposite way: they only exist if your contract creates them. Where they apply, state the rate, the basis (per month or per annum) and the day they start accruing. Some jurisdictions set statutory interest on late commercial payments, which can be higher than what businesses put on their own invoices — worth checking for your country.

Putting terms on the invoice

State the term ("Net 30") and the resulting due date as an actual calendar date
Name the accepted payment methods and give the details for each
Reference the agreement or purchase order the terms come from
If a deposit was paid, show it and show what remains
Keep the wording identical across invoices, so it reads as policy rather than negotiation

When an invoice goes past due

Send a short factual reminder on the day after the due date, addressed to accounts payable rather than only to your contact, with the invoice attached again. Most late payments at this stage are administrative, not adversarial. Escalate on a schedule you decide in advance — reminder, second reminder with a statement, then a formal demand — so you are not improvising under pressure.

Frequently asked questions

Published 18 September 2026. Last updated 18 September 2026. Written by the Free Invoice Generator team. General invoicing information, not tax or legal advice.

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