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10 Payment Terms Examples
Copy-Paste for Your Invoice or Contract

πŸ“… May 2026Β·πŸ• 7 min read

Getting your payment terms right is one of the highest-ROI things you can do as a freelancer. Clear terms reduce late payments, set expectations, and give you legal protection if things go wrong. Here are 10 copy-paste examples for different situations.

πŸ’‘ Quick tip: Even the best payment terms don't collect late payments automatically. Chaser adds automatic 4-stage email reminders after the due date β€” day 3, 7, 14, and 30. Terms + automation = fastest path to getting paid.
#1

Standard Net 30

Most common
Payment is due within 30 days of the invoice date. Late payments will incur interest at 8% above the Bank of England base rate per the Late Payment of Commercial Debts Act 1998.

When to use: Standard B2B invoicing. Accepted by most corporate clients.

#2

Net 15 (faster cash flow)

Recommended for freelancers
Payment is due within 15 calendar days of the invoice date. Please transfer the full amount to the bank details below by [specific due date].

When to use: Better for freelancers and small agencies. Many clients accept it happily.

#3

Due on Receipt

Fastest
Payment is due upon receipt of this invoice. Please arrange immediate bank transfer or card payment via the link below.

When to use: Small jobs, trusted clients, or when client pays via card link (Chaser iDEAL).

#4

50% Deposit + 50% on Completion

Project-based
50% deposit (Β£[AMOUNT]) is due before work commences. The remaining 50% (Β£[AMOUNT]) is due within 14 days of project delivery. Work will not begin until the deposit is received.

When to use: Long projects, new clients, or high-value work where cash flow matters.

#5

Milestone Billing

Large projects
Invoice #1 (Β£[X]) due on project kick-off.
Invoice #2 (Β£[X]) due on completion of [Milestone 2].
Invoice #3 (Β£[X]) due on final delivery and sign-off.
Each invoice is due within 14 days of issue.

When to use: Software development, construction, long-term campaigns.

#6

Monthly Retainer

Ongoing work
This invoice covers the monthly retainer for [Month]. Payment of Β£[AMOUNT] is due by the [1st/15th] of each month. Unused retainer hours do not roll over. Additional hours above [X] per month are billed at Β£[RATE]/hour.

When to use: Ongoing client relationships, consultants, virtual assistants.

#7

Early Payment Discount

Incentive-based
Net 30 payment terms apply. A 2% discount is offered for payment received within 10 days of invoice date (2/10 Net 30). This discount cannot be applied retroactively.

When to use: When you want to incentivise faster payment without requiring it.

#8

Late Payment Fee Clause

Protective
Payment is due within 30 days. Invoices not paid by the due date will accrue late payment charges of 1.5% per month (18% annually) on the outstanding balance, plus any costs incurred in collecting the debt.

When to use: Add to any invoice terms. Deters late payment and compensates for cash flow impact.

#9

International / USD Terms

International clients
Payment in USD. Wire transfer or Wise. All bank fees are the responsibility of the payer. Payment is due within 30 days. Exchange rate applied is the mid-market rate on the invoice date.

When to use: US clients or cross-border work where currency and bank fees matter.

#10

Pause Clause

Project protection
Work will be paused on all active projects if any invoice is more than 14 days overdue. Work resumes upon payment in full of all outstanding invoices. [Your Name] is not liable for delays caused by paused projects due to non-payment.

When to use: Protects against scope creep and non-payment on long projects.

How to choose your payment terms

New client?

Start with Net 15 or 50% deposit. It's easier to loosen terms later than to tighten them.

Large corporate client?

They likely have rigid Net 30/60 AP cycles. Accept it but consider factoring in 30-day float when pricing.

Client who has paid late before?

Tighten terms (Net 7, deposit required) or add an explicit late fee clause before issuing the next invoice.

Long project?

Use milestone billing β€” never let a project go 3+ months without receiving payment for completed work.

Ongoing relationship?

Monthly retainer with clear terms about hours, rollovers, and what happens if payment is missed.

Late payment law β€” UK & EU

πŸ‡¬πŸ‡§ UK

  • β€’ Late Payment of Commercial Debts Act 1998
  • β€’ Automatic right to 8% + Bank of England base rate
  • β€’ Compensation: Β£40–£100 per unpaid invoice
  • β€’ Small Claims Court for <Β£10,000 (Β£35–£455 fee)

πŸ‡³πŸ‡± Netherlands

  • β€’ Wettelijke rente (legal interest) automatically applies
  • β€’ Incassokosten (collection fees) on top if you use a bureau
  • β€’ Small claims ('kantonrechter') for <€25,000
  • β€’ ZZP: standard 30-day terms unless agreed otherwise

Great terms are step 1. Automatic reminders are step 2. πŸ•

Chaser sends 4 escalating emails after the due date without you lifting a finger. First 5 invoices free.

Try Chaser free β†’

Related articles

Net 30 payment terms explained β†’Net 15 payment terms β€” when to use β†’Invoice payment reminder timing β†’Free payment terms generator tool β†’