Invoice Payment Terms Explained: Net 30, Net 14, Net 7 and More
"Net 30" appears on millions of invoices. Most freelancers use it because everyone else does. But do you know what it means — and whether it's the right choice for you? Here's a plain-English guide to payment terms, and why the terms you choose directly affect when you get paid.
Common payment terms explained
Payment due 30 days from invoice date
The most common default. Benefits the buyer — not you. Gives clients a free month of credit.
Payment due 14 days from invoice date
Widely accepted, especially for project work. Significantly improves cash flow vs Net 30.
Payment due 7 days from invoice date
Appropriate for small, quick-turnaround projects or regular clients with established payment relationships.
Payment expected immediately on receiving the invoice
Common for small amounts or one-off work. Some clients push back — have a justification ready.
2% discount if paid within 10 days; otherwise due in 30 days
An incentive for early payment. The 2% costs you money — only use if cash flow is very tight and early payment is worth the discount.
Payment due at the end of the month in which the invoice is issued
Can mean anywhere from 1–31 days depending on when in the month you invoice. Avoid this ambiguity.
Deposit before work, balance on delivery
The best cash flow structure for project-based freelancers. Protects against non-payment and front-loads your income.
Payment due 60 or 90 days from invoice date
Common in enterprise/corporate clients. Terrible for freelancers. Push back or charge a premium for these terms.
Which payment terms should freelancers use?
Our recommendation by project type:
Why Net 30 hurts freelancers (and who it helps)
Net 30 became the default because large companies standardised on it. For a large company, deferring supplier payments by 30 days improves their cash position — they hold onto money longer before paying it out.
For a freelancer, this means:
- You deliver work in January
- You invoice in January
- You get paid in March (if they pay on time — many don't)
- You funded the client's work for 30–60+ days at zero interest
Net 14 is a reasonable alternative that most professional clients accept without complaint. Simply state it on your invoice and in your contract.
Legal payment terms limits
🇬🇧 UK
Maximum 60 days for business-to-business invoices under the Late Payment Act. After the due date, 8% above Bank of England base rate applies automatically.
🇪🇺 EU
EU Late Payment Directive: maximum 30 days for public sector, 60 days for commercial transactions. 8% above ECB reference rate on overdue amounts.
🇺🇸 US
No federal standard — state laws vary. Late payment interest is enforceable if stated in contract. Net 30 is widely expected by corporate clients.
🇦🇺 AU
No single national law. Small Business Commissioner in each state handles disputes. 20 business days is typical for SME invoices.
Even good terms need enforcement
Net 14 terms are useless if you don't follow up when they're breached. Most freelancers set terms and then wait weeks before following up. The terms create the expectation; the follow-up enforces it.
Automated follow-up sequences mean every overdue invoice is chased on day 1, 3, 7, and 14 — without you having to remember or write a single email.
Set the terms. Let Chaser enforce them.
Chaser sends automated follow-ups the moment an invoice passes its due date — keeping clients accountable to the terms you set. Free for 3 invoices.
Try Chaser free →