Your payment terms directly affect how quickly you get paid. The difference between Net 7 and Net 30 is not just 23 days — it is 23 days of cash flow, and over a year, that compounds into thousands of pounds tied up in unpaid invoices.
Common Payment Terms
Due on Receipt
Payment is expected immediately upon receiving the invoice. Best for small one-off jobs or clients with a history of late payment.
Net 7
Payment due within 7 days. Increasingly popular with freelancers and appropriate for most small to medium projects.
Net 14
Payment due within 14 days. A good balance between being accommodating and maintaining cash flow. The most common freelancer term.
Net 30
Payment due within 30 days. Standard for larger companies and agencies, but can strain freelancer cash flow. Avoid if possible.
Which Terms Should You Use?
- New clients — Net 7 or Net 14, with a deposit upfront
- Trusted repeat clients — Net 14 is reasonable
- Large companies/agencies — they may insist on Net 30; negotiate to Net 14 if possible
- High-value projects — milestone payments (e.g. 40% upfront, 30% at midpoint, 30% on completion)
Early Payment Discounts
Some freelancers offer a small discount for fast payment:
- 2/10 Net 30 — 2% discount if paid within 10 days, otherwise full amount due in 30 days
- This can incentivise faster payment without reducing your rate for all clients
How to State Terms on Your Invoice
Example:
"Payment Terms: Net 14. Payment is due within 14 days of the invoice date. Late payments are subject to statutory interest at 8% per annum above the Bank of England base rate plus a fixed compensation fee under the Late Payment of Commercial Debts (Interest) Act 1998."