Payment terms decide when you get paid, and they are one of the few parts of a project you control completely. Here’s how to choose them.
What the common terms mean
- Due on receipt: the client pays as soon as they get the invoice.
- Net 7, Net 15, Net 30: the client has 7, 15 or 30 days from the invoice date.
- 50% upfront: half before the work starts, half when it’s delivered.
Shorter is better, but match the client
Small clients can usually pay on receipt or within a week. Larger companies often pay in fixed cycles and may not be able to pay faster than 30 days, whatever the invoice says. Ask about their payment cycle before you agree a price.
Ask new clients for a deposit
A deposit of 25 to 50 percent before you start protects you on a first project. It also shows that the client is serious.
Late fees: check the rules where you live
Many freelancers add a late fee to their terms. What you’re allowed to charge depends on the country, so check the local rules before you add one.
Put the terms everywhere
Write the terms in the contract, and repeat them on every invoice with the actual due date. Clients rarely argue with terms they agreed to in writing.
Remind before the due date, not after
A friendly note a few days before the due date gets more invoices paid on time than any reminder sent afterwards. Larkbill sends that note for you, and a firmer one if the date passes.