Net 30 / Net 15 / Due on Receipt

Payment terms are the rules on your invoice that tell the client when they need to pay you. They're typically printed near the total amount and expressed in shorthand.

"Net 30" means the full invoice amount is due within 30 calendar days of the invoice date. It's the most common payment term in business and gives clients about a month to process your invoice through their accounts payable department. "Net 15" gives them 15 days — faster payment for you, still reasonable for most clients. "Due on Receipt" means payment is expected immediately when the invoice is received — no waiting period.

Other variations you'll encounter: "Net 60" or "Net 90" (common with larger companies and agencies — you wait 2-3 months), "2/10 Net 30" (2% discount if paid within 10 days, otherwise full amount due in 30), and "50% upfront, 50% on delivery" (splitting payment into milestones).

The payment terms you set have a direct impact on your cash flow. Net 30 sounds fine in theory, but in practice clients often pay late — Net 30 becomes Net 45 or Net 60. The larger the company, the slower they tend to pay. Many freelancers quote Net 15 or even Due on Receipt for smaller projects, and Net 30 for larger corporate clients where it's expected.

Cash flow is the #1 financial challenge for freelancers, and payment terms are the biggest lever you have to control it. If you have $15,000 in outstanding invoices on Net 30 terms and your rent is due next week, you've got a problem — even though you're technically owed plenty of money. Shortening your payment terms (or requiring deposits) accelerates when that money actually hits your account. It's also worth noting: you set the terms. Many freelancers accept whatever the client dictates, but your payment terms are negotiable, especially when you have leverage (before signing the contract, not after).