You have probably seen "Net 30" written on an invoice or a contract and wondered exactly what it means. Payment terms are one of the most important but least understood parts of professional invoicing — and getting them wrong costs freelancers and small businesses thousands of dollars in delayed payments every year.

This guide breaks down every common payment term in plain English so you can choose the right one for every client and every project.

What Does "Net" Mean on an Invoice?

The word "Net" on an invoice simply means "the total amount due." When you write "Net 30," you are saying: the total amount due must be paid within 30 days of the invoice date.

The number after "Net" is always the number of days the client has to pay.

Common Payment Terms Explained

Due Upon Receipt

What it means: Payment is expected the moment the client receives the invoice. There is no grace period.

Best for: New clients you don't have a relationship with yet, small one-off projects, or any situation where you need cash quickly.

Risk: Some large companies will refuse "Due Upon Receipt" terms as they have internal AP processes that require a minimum processing period.

Net 7

What it means: Payment is due within 7 days of the invoice date.

Best for: Regular clients with whom you have a strong relationship, or very small projects under $500.

Net 14

What it means: Payment is due within 14 days of the invoice date. This is our recommended default for most freelancers.

Best for: Most freelance projects. It gives the client enough time to process the invoice without giving them so long that they deprioritize it.

Net 30

What it means: Payment is due within 30 days of the invoice date. This is the most common standard in the business world.

Best for: Large corporate clients, B2B projects, and any client whose procurement department needs time for approval workflows.

Risk: For freelancers and micro-businesses, 30 days is a long time to wait, especially if you are living project-to-project. Always factor this into your cash flow planning.

Net 60 and Net 90

What it means: Payment is due in 60 or 90 days.

Best for: Large enterprise clients and government contracts where long payment cycles are standard policy.

Warning: Avoid these terms unless you can afford to wait. Many freelancers who accept Net 60 terms find themselves in serious cash flow trouble while waiting for payment.

50/50 (Deposit + Final Payment)

What it means: 50% of the project fee is paid upfront before work begins, and the remaining 50% is due upon completion.

Best for: Any project over $500 or any new client. A deposit protects you if the client disappears mid-project and motivates you to complete the work on time.

2/10 Net 30 (Early Payment Discount)

What it means: The client gets a 2% discount if they pay within 10 days; otherwise, the full amount is due within 30 days.

Best for: Situations where you need cash urgently and are willing to offer a small incentive to get paid faster.

Which Payment Term Should You Use?

Brand new client, small project: Due Upon Receipt or Net 7
Regular freelance project: Net 14 (our recommendation)
Large corporate project: Net 30
Any project over $500: 50% upfront deposit, balance on completion
Enterprise or government: Net 30 to Net 60

How to Add Payment Terms to Your Invoice

In FluxInvoice's free invoice generator, you can specify your payment terms directly in the invoice notes field. Simply write "Payment Terms: Net 14" or "Payment due by October 15, 2026" and your client will see it clearly on the PDF they receive.

Create a professional invoice with clear payment terms →

What Is Net 30? Payment Terms Explained for Freelancers and Small Businesses