Guide
Invoice payment terms explained
Payment terms are simply the deadline you give a client to pay an invoice. Setting them clearly - and on every invoice - is one of the easiest ways to get paid faster and to give yourself a firm date to chase from. Here is what the common terms mean and how to choose.
The common terms
- Due on receipt - payment is expected as soon as the invoice arrives. Best for small jobs or new clients.
- Net 7 / Net 14 - payment due within 7 or 14 days of the invoice date. A good default for freelancers; short enough to protect cash flow.
- Net 30 - due within 30 days. Common with larger companies, but it is a long time to wait - only offer it if you need to.
- EOM (end of month) - due at the end of the month the invoice was issued, sometimes "EOM + 30".
- Deposit / upfront - part or all of the fee paid before work starts. The single best protection against non-payment.
How to choose your terms
Shorter is better for your cash flow, so default to the shortest your clients will accept - Net 7 or Net 14 works for most freelance work. Reserve Net 30 for clients who require it. For new or higher-risk clients, ask for a deposit. Whatever you choose, agree it before the work starts and put it in writing, so the due date is never a surprise.
Always put the terms on the invoice
State the due date as an actual date ("Payment due by 30 June 2026"), not just "Net 14" - it removes any ambiguity and gives you a clear day to start chasing from. Include how to pay and your reference, too. If you do not specify a date, the legal default for business invoices in the UK is 30 days.
How clear terms get you paid faster
An invoice with a specific due date, sent promptly, with an easy way to pay, simply gets paid sooner. And it sets you up to chase cleanly: the moment the date passes, a polite reminder is entirely reasonable. If a client still runs late, you have a firm date on record - and for business invoices you can charge interest and compensation from the day after it was due.
Then chase from day one
Clear terms only help if you act on them. A reminder on the due date, and a sensible sequence after that, turns "due" into "paid" far more reliably than hoping. See how to chase an unpaid invoice and grab the reminder templates.
Set the terms, let Badger hold the line
Add an invoice with its due date and Badger chases it for you the moment it is late - polite at first, firmer over time, stopping when you are paid. Your first chase is free.
Start chasing freeGeneral information for the UK, not legal advice. Check your own contracts and the current rules for your situation.