Glossary
Payment terms
Also called: Net 30 · Net 15 · due on receipt · invoice terms
Payment terms are the conditions on an invoice that state when payment is due and how it can be made. 'Net 30' means the full amount is due 30 days after the invoice date; 'due on receipt' means immediately; '2/10 Net 30' offers a 2% discount for payment within 10 days, otherwise full payment in 30.
Last updated October 13, 2026
Common terms
Due on receipt is standard for small projects and first engagements. Net 15 and Net 30 are the most common in professional services; Net 60 and Net 90 appear with large companies whose accounts-payable cycles are slow. Early-payment discounts (2/10 Net 30) trade margin for cash; late fees (for example 1.5% per month) discourage slow payment and must be stated in advance to be enforceable in most places.
Choosing terms
Shorter terms are better for you and are easier to get than most freelancers assume — many clients simply pay on the date the invoice says. Set your default in your contract, print the due date on every invoice as a date rather than a term, and offer an online payment method so the client can pay the moment they approve it.
Terms and cash flow
Net 30 on a monthly invoice means you are financing the client for up to 60 days from the first hour worked. Milestone billing, deposits, and recurring invoices at the start of the period all shorten that gap without changing the headline term.
In Hoursmith
Hoursmith invoices carry a due date and the payment methods you choose per invoice — card through your own Stripe account on Studio and above, plus bank transfer or any custom method on every plan. On Studio and Agency, overdue invoices can get one-click or scheduled reminders.