How to Write Payment Terms on Invoices: Net 30, Net 15, Due on Receipt
Learn how to write clear payment terms on your invoices. Understand Net 30, Net 15, Due on Receipt, and late payment penalties.
What Are Payment Terms?
Payment terms define when and how a client should pay your invoice. Clear payment terms reduce confusion, set expectations, and help you get paid on time.
Common Payment Terms Explained
- Due on Receipt — Payment is expected immediately when the invoice is received.
- Net 15 — Payment is due within 15 days of the invoice date.
- Net 30 — Payment is due within 30 days. The most common term for B2B invoices.
- Net 60 — Payment is due within 60 days. Common for large enterprises.
- 50/50 — 50% upfront before work begins, 50% on delivery.
Which Payment Terms Should You Use?
For freelancers and small businesses, Net 15 or 50/50 split is recommended. Shorter terms mean faster cash flow. Reserve Net 30 for established clients with a good payment history.
→Try These Free Tools
Generate this document in 30 seconds
Clorefy uses AI to create professional invoices, contracts, and proposals from a single sentence. GST, VAT, and sales tax handled automatically for every country worldwide.
Try Clorefy Free — No credit cardKeep Reading
UK Freelancer Invoice: HMRC-Compliant Format Guide
Complete guide to HMRC-compliant invoicing for UK freelancers: mandatory fields, VAT rules, MTD software requirements, and flat rate scheme details.
Read article Country GuideHow to Invoice US Client from India: Legal & Tax Guide
Complete guide to invoicing US clients from India: FEMA rules, GST LUT, FIRC requirements, and tax compliance for freelancers and agencies.
Read article Country GuideFreelancer Invoice India: Complete GST-Compliant Template Guide
Master GST-compliant invoicing for Indian freelancers. Covers TDS, 44ADA, e-invoicing thresholds, and IRN requirements with actionable templates.
Read article