Payment terms in a freelance contract
The payment clause decides when you actually get paid, not when the work is done. Here is what to look for, and what to ask for, in plain words.
What "Net 30" means
Net 30 means the invoice is due 30 days after a starting point, usually the invoice date. Net 60 and Net 90 work the same way. The number matters, but so does the starting point.
- From the invoice date: clear and predictable.
- From "receipt of the invoice": the client can say it never arrived. Send invoices by email and keep the record.
- From "acceptance of the work": the clock starts only when the client decides. Ask for a deadline for acceptance.
- "When the client is paid by its customer": you carry the client's business risk. Avoid it if you can.
What to ask for
Fourteen or thirty days is common for freelancers. Large companies often insist on longer terms in their standard templates; if they will not move, a deposit or milestones make the wait cheaper for you.
Deposits and milestones
A deposit before work starts (often 30 to 50% of the fee) means a cancelled project still pays something, and shows the client is serious. On longer projects, split the fee into milestones tied to deliverables, each invoiced when it is delivered.
Late fees
A late fee gives the client a reason to pay on time. A simple version is interest on the overdue amount plus the cost of recovering it. In the EU, the Late Payment Directive already gives businesses statutory interest and a fixed compensation for recovery costs on late B2B payments, and the UK has a similar law. Writing it into the contract still helps: the client sees it before they sign.
Other things to check
- Currency and fees: who pays bank or transfer fees, and in which currency you are paid.
- Expenses: whether travel, licences or stock assets are paid on top of the fee.
- Set-off: a clause letting the client deduct "any amounts owed" from your invoice can swallow your fee in a dispute.
- Pausing work: the right to stop when an invoice is overdue protects you from working for free.
Once the terms are set, make the invoice with our free invoice generator: put the due date and payment details on it.
This guide is general information, not legal advice. Rules differ between countries and states, and a clause that is common in one place can be unenforceable in another. For a high-stakes contract, ask a lawyer where you or your client are based.
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