Payment terms aren't just legal boilerplate at the bottom of your invoice.
They're a psychological signal that determines whether you get paid in 10 days or 60.
Most freelancers default to "Net 30" because that's what they've seen on other invoices. But Net 30 is a corporate standard designed for companies with accounts payable departments—not solo freelancers waiting on rent money.
Here's how to set payment terms that actually get you paid on time.
Why Payment Terms Matter More Than You Think
There's a weird psychology to invoicing: the longer the payment window, the less urgent it feels.
Net 60? Client thinks: "I've got two months. I'll deal with this later."
Net 7? Client thinks: "Oh, this is due soon. Let me handle it now."
Longer deadlines create procrastination. Shorter deadlines create action.
And since most clients pay right before the deadline (not when they receive the invoice), shorter terms = faster cash.
Common Payment Terms: What They Mean
Here's what the standard options actually look like in practice.
| Payment Terms | What It Means | When to Use It | Real-World Outcome | |---------------|---------------|----------------|---------------------| | Due on Receipt | Payment expected immediately | Rush jobs, one-off clients, high trust risk | 50/50 shot they pay fast or ignore it | | Net 7 | Payment due within 7 days | Immediate work, trusted clients, small invoices | Usually paid within 10-14 days | | Net 14 | Payment due within 14 days | Most freelance projects | Usually paid within 14-21 days | | Net 30 | Payment due within 30 days | Industry standard (unfortunately) | Usually paid within 30-45 days | | Net 60 | Payment due within 60 days | Large corporations, agencies, government | Usually paid within 60-90 days (or later) |
The pattern: Clients pay at the deadline, not before.
If you set Net 30, expect to wait 30+ days. If you set Net 14, you'll usually see payment in two weeks.
When to Use Shorter Terms (Net 7 or Net 14)
Use shorter terms when:
- You're working with small businesses or solo clients. They're agile. They can pay you quickly.
- The project is small or one-off. Less bureaucracy = faster payment.
- You've worked with the client before and trust them. They know you deliver. You know they pay.
- Cash flow is tight for you. Don't subsidize their slow payment cycles with your rent money.
Net 14 is the sweet spot for most freelancers. It's professional, reasonable, and fast enough to keep cash flowing.
When You're Stuck with Net 30 (or Longer)
Sometimes you don't get to choose.
Large companies, agencies, and government clients often have fixed payment processes. You invoice them, and the payment gets queued in their system for 30-60 days (or longer).
If you're dealing with this:
- Negotiate a deposit upfront. 50% before you start, 50% on completion with Net 30 terms. Now you've got cash flow while you wait.
- Build the wait time into your rate. If they're paying in 60 days instead of 14, that's a 46-day interest-free loan. Charge accordingly.
- Limit how much of your revenue comes from slow payers. Don't let one Net 60 client represent 80% of your income. Diversify.
Learn more about managing freelancer cash flow in our invoicing best practices guide.
How to Negotiate Payment Terms
Most freelancers think payment terms are non-negotiable. They're not.
Here's how to have the conversation:
Before You Start the Project
You: "Just confirming payment terms—my standard is Net 14. Does that work for your accounting process?"
Them (Option 1): "Yeah, that's fine." → Done. You just set better terms than most freelancers.
Them (Option 2): "We usually do Net 30." → You: "No problem. Would you be open to 50% upfront and 50% on delivery with Net 30 on the final invoice?" → Now you've got half the money before you even start.
Them (Option 3): "Our system only does Net 60." → You: "Got it. Since that's longer than my usual terms, I adjust my rate to account for the extended payment window. For this project, that'd be [+10-15% on your rate]." → You're not being difficult. You're pricing in the financing cost of waiting two months.
When They Push Back
If they say "Net 60 is our policy, and we can't change it"—that's fine.
You can still negotiate deposits, milestones, or rate adjustments. And if they won't budge on anything, ask yourself: Is this client worth the cash flow hit?
Sometimes the answer is yes (big project, great exposure, long-term relationship). Sometimes it's no.
Late Payment Clauses That Actually Work
Your payment terms should include what happens if they don't pay on time.
Most freelancers write: "Payment due within 14 days."
Better version: "Payment due within 14 days. Invoices unpaid after 30 days are subject to a 5% late fee and 1.5% monthly interest."
Even better if you're in the EU: "Late payments are subject to the EU Late Payment Directive—€40 compensation + 8% interest annually."
Will you always enforce this? Maybe not. But having it written down makes clients take deadlines more seriously.
And if you do need to enforce it, you've got the legal backing. Here's how to claim EU late payment compensation.
Enforcing Your Terms Professionally
The invoice is 15 days overdue. Now what?
Most freelancers either:
- Do nothing (and wait in awkward silence), or
- Send a passive-aggressive email that damages the relationship.
Better approach:
Day 15 (5 days after deadline): "Hi [Client], just checking in—wanted to make sure invoice #123 didn't get lost in your inbox. Let me know if you need me to resend it."
Day 22 (1 week overdue): "Hi [Client], following up on invoice #123 (due [date]). If there's an issue with the invoice or a delay on your end, let me know and we can work it out."
Day 30 (2 weeks overdue): "Hi [Client], invoice #123 is now 2 weeks overdue. Per our agreement, late fees apply after 30 days. I'd like to resolve this before then—can you confirm payment status?"
Firm, professional, no drama.
How Automation Helps (A Lot)
Manually tracking payment terms is a mess.
You've got 10 invoices out. Some are Net 14, some are Net 30. Which ones are overdue? Which ones need a follow-up? Did that payment that just hit your account match invoice #047 or #052?
This is where automation saves you.
Chronobill's Action Inbox automatically surfaces:
- Overdue invoices (so you know who to follow up with)
- Unpaid balances (so nothing slips through the cracks)
- Payment matching (so you know exactly which invoice was paid)
No spreadsheets. No manual tracking. Just a system that keeps you on top of what you're owed.
The Bottom Line
Payment terms aren't just a formality. They're a tool.
Shorter terms = faster payment. Clear late fees = clients take deadlines seriously. Automation = you don't have to track it all manually.
If you're using Net 30 because "that's just how it's done," try Net 14 on your next project. See what happens.
Odds are, you'll get paid faster—and realize you've been subsidizing slow payers for no reason.
Your work has value. Your time has value. Your payment terms should reflect that.