Common payment terms (and when to use them)
| Term | Best for | Notes |
|---|---|---|
| Due on receipt | Small projects and rush work | Works best when clients already expect fast payment. |
| Net 7 | Most freelancers | Fast enough to protect cash flow while staying reasonable. |
| Net 14 | Mid-sized clients | A common compromise when clients need internal approval. |
| Net 30 | Enterprise clients | Often non-negotiable; consider deposits or milestones. |
Practical recommendations
Use deposits for larger projects (25–50% is common).
Bill at milestones so you’re not floating the entire project.
Put payment terms in your contract and on every invoice.
Follow up consistently (a process beats a policy).
Frequently asked questions
What payment terms should freelancers use?
Many freelancers start with Net 7 or Net 14. If you work with larger companies, Net 30 may be standard—but you can still protect cash flow with deposits and milestone billing.
Should I charge late fees?
Late fees can work, but only if you communicate them upfront (in your contract and on your invoice). In practice, consistent follow-ups and deposits often matter more than penalties.
Should I require a deposit?
For new clients or larger projects, a deposit (often 25–50%) reduces risk and improves cash flow. Put the deposit terms in writing.