Payment terms tell your client when you expect to be paid. Choosing the right terms makes a bigger difference to your cash flow than almost anything else.
What Does “Net” Mean?
“Net” simply means the total amount is due within that many days of the invoice date. Net 15 means payment is due 15 days after you send the invoice. Net 30 means 30 days. Net 60 means 60 days.
Net 15
Best for: Freelancers, small projects, clients with fast payment processes
Net 15 is the sweet spot for most independent professionals. It’s short enough to maintain cash flow but gives clients enough time to process payment without rushing. Use this as your default.
Net 30
Best for: Larger clients, corporate accounts, ongoing retainers
Net 30 has become the default in many industries. If your client is a larger company with an accounts payable department, they may expect Net 30. It’s acceptable, but be aware payments often arrive on day 35–45 in practice.
Net 60
Best for: Large enterprise clients only — avoid if possible
Net 60 means you’re effectively giving your client a 2-month interest-free loan. Only accept these terms if the contract size justifies it and you have enough cash flow to wait.
Due on Receipt
Payment is expected immediately. Use this for small one-off projects with new clients or for clients who have been slow to pay in the past.
How to Get Paid Faster Regardless of Terms
- Add a Pay Now button (clients with a card pay instantly)
- Set up automated reminders 3 days before due date
- Include a late fee clause — even 1.5% per month changes behaviour
- Send invoices immediately, not at the end of the month
Invoicely.live handles all of this automatically — Stripe payments, reminders and late fees are built in.