INVOICING

How to Set Payment Terms for Freelancers and Agencies

Vague payment terms are the number one reason invoices go unpaid. Setting clear, specific terms upfront is not just professional — it is the difference between getting paid on time and chasing clients for weeks.

May 2026·6 min read

What are payment terms?

Payment terms define when and how a client is expected to pay you. They appear in your contract and on your invoice. They set the rules of the financial relationship before work begins — so there is no ambiguity later.

Common payment term options

Due on receipt

Payment is expected immediately when the invoice is sent.

✓ GOOD FOR
Small projects, one-time clients, or high-risk situations.
⚠ NOT IDEAL FOR
Larger clients who need internal approval processes.
Net 7

Payment due within 7 days of the invoice date.

✓ GOOD FOR
Short projects, fast-turnaround work, digital deliverables.
⚠ NOT IDEAL FOR
Enterprise or corporate clients who have longer payment cycles.
Net 14

Payment due within 14 days — the sweet spot for most freelancers.

✓ GOOD FOR
Most freelance and agency projects. Gives clients enough time without letting invoices drift.
⚠ NOT IDEAL FOR
Clients who need very short turnaround payment.
Net 30

Payment due within 30 days — standard in corporate environments.

✓ GOOD FOR
Large companies with formal accounts payable processes.
⚠ NOT IDEAL FOR
Small freelance projects where 30 days is too long to wait.
50% upfront, 50% on completion

A deposit before work starts, balance on delivery.

✓ GOOD FOR
Most projects. Protects you if the client disappears and ensures skin in the game.
⚠ NOT IDEAL FOR
Very small projects where the admin overhead is not worth it.

How to write payment terms in your contract

EXAMPLE PAYMENT TERMS CLAUSE
Payment Terms

A deposit of 50% ([amount]) is due before work begins. 
The remaining 50% ([amount]) is due upon final delivery.

Invoices are due within [14] days of the invoice date. 

Invoices unpaid after [14] days will incur a late fee of 
[5]% of the outstanding balance for each [30]-day period 
the invoice remains unpaid.

Work will not commence until the deposit invoice is paid 
in full.

The most common payment term mistakes

  • "Payment due upon receipt." This is not a term — it is a wish. Clients interpret this differently. Always give a specific number of days.
  • No late fee clause. Without a late fee, there is no consequence for paying late. Even a small late fee (1-2%) changes client behaviour significantly.
  • Agreeing to Net 30 when you need cash faster. You are allowed to push back on payment terms. Net 14 is standard for freelancers.
  • No deposit requirement. A project without a deposit has no financial commitment from the client. Always require something upfront.
  • Not putting terms in the contract. Verbal payment terms are unenforceable. Always get it in writing before work starts.

Enforce your payment terms automatically

Setting good payment terms is step one. Enforcing them is step two. Becflow sends automatic payment reminders at day 3, day 7, and day 14 — so your terms actually mean something. Clients pay faster when they know a follow-up is coming.

Set your terms once. Enforce them automatically.

Agreements, invoices, and automatic reminders — all in one place.

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