Invoice payment terms explained

Payment terms tell your client when to pay. Vague terms are the number-one cause of late payment — here’s what the common ones mean and which to pick.

The common terms

• Due on receipt — payment is expected as soon as the invoice arrives. Best for one-off jobs and new clients.
• Net 7 / Net 14 — payment due within 7 or 14 days of the invoice date. Common for freelancers and small businesses.
• Net 30 — due within 30 days. Standard for larger companies; it means you wait a month, so use shorter terms if cash flow matters.
• Net 60 / Net 90 — due in 60 or 90 days. Common with big corporate clients; negotiate hard or add a deposit.

Deposits and milestones

For bigger projects, don’t carry all the risk. Ask for a deposit up front (say 30–50%) and bill the balance on completion, or split a project into milestone payments. In Plainvo you can record an amount paid and the balance due updates automatically, so a deposit invoice is one field away.

How to get paid faster

A few small things make a measurable difference:

• Use a short, explicit due date — “Due by 14 June 2026” beats “Net 14” buried in fine print.
• Make paying frictionless — add your bank details or a pay link so it’s one click.
• Invoice immediately — the clock only starts when you send.
• State a late fee if you charge one (e.g. “1.5% per month on overdue balances”).

Related: how to invoice as a freelancer · how to write an invoice · invoice vs receipt.