Payment terms tell a client when an invoice must be paid. They are a short phrase on the invoice, such as “Due on receipt” or “Net 14”, and they set the due date. Here is what each common term means, which to choose, and how to set them in the free invoice generator.
- Due on receipt: pay as soon as you get the invoice.
- 7 or 14 days: the usual choice for freelancers and small jobs.
- 30 days (“Net 30”): common with companies. Agree it before you start.
- 60 days: long, but some large clients insist on it.
- Always print the due date, not only the number of days.
Common payment terms and what they mean
| Term | Meaning | Example (invoice dated 23 Oct) |
|---|---|---|
| Due on receipt | Pay as soon as you receive the invoice | Due 23 Oct |
| Net 7 / 7 days | Pay within 7 days of the invoice date | Due 30 Oct |
| Net 14 / 14 days | Pay within 14 days | Due 6 Nov |
| Net 30 / 30 days | Pay within 30 days | Due 22 Nov |
| Net 60 / 60 days | Pay within 60 days | Due 22 Dec |
| Deposit up front | Part is paid before the work, the rest later | For example 50% to start, 50% on completion |
Which payment terms should you choose?
- New client or small job: “Due on receipt” or 7 days, with a deposit for bigger work.
- Regular, trusted client: 14 days.
- A company with its own rules: 30 days or more. Agree this in your quote.
- Selling goods: consider payment before delivery, or on delivery.
Tip: shorter terms mean you are paid sooner, but clients may push back. Start short, and be ready to go to 14 or 30 days for a client you want to keep.
Set payment terms in the free invoice generator
- Open the invoice generator Check the invoice date.
- Choose Payment terms Pick Due on receipt, 7 days, 14 days, 30 days, 60 days or Custom date. The due date fills in from the invoice date.
- Add terms in Terms & conditions Tap a ready-made line such as “Payment is due within 30 days of the invoice date”, and add any agreed deposit or late-payment wording.
- Download the PDF Click Download PDF and send it, or Open / print for a paper copy.
Make an invoice with clear terms
Free, no sign-up. The due date is worked out for you.
Wording you can copy
Payment is due within 14 days of the invoice date.
A 50% deposit is required to start work, and the balance is due on completion.
Please use the invoice number as your payment reference.
Late fees and interest are only fair if you told the client beforehand, and the rules differ by country, so check what is allowed where you work.
Questions people ask
What does “Net 30” mean?
Net 30 means the full amount is due within 30 days of the invoice date. Net 14 means 14 days, and so on. “Due on receipt” means payment is expected as soon as the client receives the invoice.
What payment terms should a small business use?
Seven or 14 days is common for small jobs and freelancers. Use “Due on receipt” for small amounts or new clients. Some large companies insist on 30 or 60 days, so agree this before you start.
Are payment terms legally binding?
They are part of what you and the client agreed, and putting them on the invoice and in your quote makes them clear. What you can enforce depends on your country, so check your local rules.
Can I offer a discount for early payment?
Yes, some businesses write something like “2% off if paid within 10 days”. Only offer it if you can afford it, and state it clearly on the invoice.
How is the due date worked out?
It counts calendar days from the invoice date. An invoice dated 23 October with 14 days is due on 6 November. The generator works this out for you when you choose the terms.
Can I change payment terms for one client?
Yes. Each invoice has its own terms, so you can give a trusted client 30 days and a new client “Due on receipt”.
Related tools and guides
- Invoice generator — free PDF invoices with payment terms and due dates.
- How to write an invoice — the full checklist and example.
- Overdue invoice reminder — wording for when payment is late.
- How to number invoices — formats and rules.