"Payment terms" is the small block of text that decides how fast you get paid. It tells the client when payment is due, how to pay, and what happens if they don't. Vague terms produce slow payments; specific terms produce predictable ones. Here's what the standard phrases mean and exactly what to write.
The standard terms, decoded
| Term | What it means | Best for |
|---|---|---|
| Due on receipt | Payment is expected as soon as the invoice arrives | Small amounts, first-time or one-off clients |
| Net 7 / Net 14 | Full amount due 7 or 14 days after the invoice date | Freelancers and small agencies — a good default |
| Net 30 | Due 30 days after the invoice date | Larger companies whose accounts-payable runs monthly |
| 2/10 Net 30 | 2% discount if paid within 10 days; otherwise due in 30 | Nudging slow-paying clients to pay early |
| 50% upfront | Half before work starts, half on delivery | New clients and larger projects — limits your risk |
One thing worth knowing: Net 30 is a client convention, not a law of nature. If you're a freelancer, you can and should propose Net 14 — most clients accept whatever the invoice says if it was also in your proposal.
Copy-paste payment terms
Drop any of these into the Terms field and adjust the specifics:
Simple and friendly (default)
"Payment due within 14 days by bank transfer or card. Please reference the invoice number."
With a late fee
"Payment due within 14 days of the invoice date. Overdue balances accrue interest at 1.5% per month."
Early-payment discount
"Terms: 2/10 Net 30 — deduct 2% if paying within 10 days; otherwise the full amount is due within 30 days."
Deposit-based project
"50% deposit due on signing; this invoice covers the remaining 50%, due within 7 days of delivery."
International client
"Payment due within 14 days by international wire (SWIFT details below). Please pay in USD; sender covers transfer fees."
Late fees: the fine print that works
A late-fee clause works mostly as a deterrent — the point isn't collecting 1.5%, it's signaling that your due date is real. Two rules: the clause must be on the invoice (and ideally in your contract) before the payment is late, and the rate must be legal in your jurisdiction — 1–2% per month is a common, conservative range. If a good client pays late once, waiving the fee graciously buys more goodwill than charging it.
A complete example
Example: Net 14 with a late-fee clause and bank details
A consulting invoice for $3,200 with the full terms block: Net 14, 1.5% monthly interest on overdue balances, a payment-reference request, and bank details in the notes. Open it in the editor and replace the details with yours.
Where the terms go
On an InvoiceKo invoice, the due date is its own field (set it — the date does more work than the prose), the how-to-pay text goes in Terms, and bank details fit well in Notes. Create an invoice free and try it — or read how to invoice your first freelance client for the full checklist.