Choosing the Best Invoicing Payment Terms

1. What are Payment Terms?

Payment terms define when your client must pay. They are typically indicated using code abbreviations like Net 15, Net 30, or COD (Cash on Delivery).

2. Net 15 vs. Net 30

Net 15 means payment is due within 15 days; Net 30 allows 30 days. For freelancers, Net 15 is standard to prevent long unpaid gaps.

3. Implementing Upfront Deposits

For large contracts, always charge a 50% upfront deposit. This protects your cash flow and ensures the client has skin in the game.