Add payment terms by stating clearly when and how the invoice must be paid, ideally as a specific calendar due date plus any conditions such as accepted methods, early payment discounts, or late fees. The cleanest approach is to agree the terms with your client up front and then restate them plainly on every invoice you send.
Payment terms are simply the rules of payment: how long the client has to pay, and what happens around early or late payment.
- What payment terms cover: At a minimum, terms set the time the client has to pay from the invoice date. They can also include the accepted payment methods, any deposit required before work starts, discounts for paying early, and any fee or interest charged if payment is late.
Common terms you can choose from.
- Due on receipt: Payment is expected as soon as the client gets the invoice. It is direct, though a specific calendar date is often clearer and easier to enforce.
- Net 7, Net 14, Net 30: These mean payment is due within 7, 14, or 30 days of the invoice date. Net 14 is popular with contractors and professional services, while Net 30 is common with larger businesses and government work.
- 2/10 Net 30: An early payment discount that gives the client 2 percent off if they pay within 10 days, with the full amount otherwise due within 30 days. It can be a useful nudge to bring cash in sooner.
Where to put them and how to word them.
- Place them clearly on the invoice: Show the terms near the total and the payment details, so they are impossible to miss. Restating them on every invoice avoids any later argument about what was agreed.
- Use a real calendar date: Rather than relying only on a phrase like payable on receipt, state the due date as an actual date, for example due by 30 July 2026. A fixed date is unambiguous and works better with reminders and automation.
- State any late fee in writing: If you intend to charge a late fee or interest, it needs to be set out in your terms in advance, and it should be a reasonable estimate of your costs rather than a penalty. Charges that look excessive can be challenged, so keep them fair and clearly disclosed.
- Agree terms up front: The smoothest collections start before the work does. Confirm your terms in your quote, engagement email, or contract so the invoice merely repeats what the client already accepted. This makes a polite follow up far easier if payment runs late.
InvoiceSonic, a free invoice generator, lets you set a due date and spell out your payment terms on each invoice, so expectations are crystal clear from the moment the client opens it. This is general information only and not legal or financial advice, so check your own contracts and obligations with a qualified professional if you are unsure.