Payment Terms Generator
Generate the exact payment terms wording for your invoices and contracts. Fill in your terms and copy the professional clause — ready to paste into contracts, invoices, or proposals.
What Are Payment Terms?
Payment terms define when and how you expect to be paid. They appear in your contract, your proposal, and on every invoice you issue. Clear terms reduce disputes, protect your cash flow, and give you legal standing to enforce late fees.
Net terms (Net 7, 14, 30, 60)
"Net 30" means payment is due within 30 days of the invoice date. "Net 7" gives the client 7 days. The number is the maximum number of calendar days before payment is considered late. Always also write the actual due date on the invoice — "Due: 28 March 2026" — so there's no ambiguity about when the clock starts.
Due on receipt
Payment is expected as soon as the invoice is received. Common for small one-off jobs, deposits, and clients who have previously paid late. It sets a clear expectation but can feel abrupt with long-term clients — use it intentionally.
Milestone-based billing
For large projects, split payment into phases: deposit before starting, mid-point, and balance on completion. This limits your exposure if a project stalls or a client relationship breaks down. Define each milestone clearly in your contract so there's no debate about whether a payment trigger has been hit.
- Always put terms on the invoice: Even if your contract states Net 30, repeat it on the invoice. Include the exact due date, not just the Net term.
- Shorter terms improve cash flow: Net 14 is paid, on average, faster than Net 30 — clients often pay to a deadline rather than paying early when the deadline is distant.
- State your late fee upfront: A late fee clause that clients see before agreeing to work is enforceable. One added after work starts is not.
- List your accepted payment methods: Removing ambiguity about how to pay reduces excuses for delay. Make it easy — bank transfer details, PayPal address, or Stripe link directly on the invoice.
Standard Payment Terms by Industry
What's typical varies by sector — use these as a starting point for negotiation.
Short terms protect cash flow. New clients: consider 50% deposit upfront. Established clients: Net 14 is widely accepted.
Larger projects justify slightly longer terms. Always include a late fee clause. Milestone billing reduces exposure on big projects.
Bill by project phase — deposit, mid-point, and completion. Retentions are common. Include clear scope to avoid disputes.
Law firms, accountants, and consultants typically use Net 30. Corporate clients may push for Net 45–60 — negotiate before signing.
Frequently Asked Questions
What payment terms should I use as a freelancer?+
Net 14 is the sweet spot for most freelancers — short enough to maintain cash flow, standard enough that clients accept it. For new clients or small projects, Net 7 or due on receipt is reasonable. Avoid Net 30+ unless the client specifically requires it and the project size justifies it.
What does '1.5% per month' mean in a late fee clause?+
It means you can charge 1.5% of the outstanding invoice amount for every month (or part-month) the payment is late. On a $1,000 invoice, that's $15/month. It's the most common late fee rate and is standard in many jurisdictions.
Do I need to include payment terms on my invoice?+
Yes — always state your payment terms on the invoice, even if they're in your contract. Include: due date (not just "Net 30" — include the actual date), accepted payment methods, and any late fee clause. Clarity prevents disputes.
Can I charge a late fee if it's not in my contract?+
In most cases, no — or it's very difficult to enforce. Always include a late fee clause in both your contract and on your invoices. In the UK, the Late Payment of Commercial Debts Act provides statutory interest rights, but your own contractual clause gives you more flexibility.
Great terms protect you. A chase system makes sure they're respected.
Clear payment terms reduce late payments — but they don't eliminate them. When clients still go overdue, InvoiceGrid gives you the tools to chase professionally, log every contact, and escalate with a full documentation trail.
- ✓Chase overdue invoices within the exact terms you just set
- ✓Automatic escalation from friendly reminder to firm to final notice
- ✓Full paper trail if you need to enforce terms — legally or otherwise
Also useful: Late fee calculator · Invoice number generator · Payment reminder email generator · Payment terms guide