Guide
Invoice Payment Terms Explained
Payment terms tell the client when payment is due, what happens if it is late, and how the invoice should be paid.
Common terms
- Due on receipt: payment is expected as soon as the invoice is received.
- Net 7: payment is due 7 days after the invoice date.
- Net 15: payment is due 15 days after the invoice date.
- Net 30: payment is due 30 days after the invoice date.
Deposits reduce risk
For custom work, a 25% to 50% deposit can protect cash flow and confirm commitment before delivery begins. The remaining balance can be due on milestone approval or before final handoff.
Late fees
Late fee rules vary by contract and location. Use the calculator to estimate timing, then confirm that your terms are enforceable for your situation.