Payment Terms Explained: Net 14, Net 30, and Getting Paid on Time
What payment terms mean, which ones to choose for your business, and how to write terms that actually get invoices paid.
"Payment terms" is the part of your invoice that says when the money is due. It sounds like fine print, but it's one of the biggest levers you have over your cash flow — especially for small businesses and freelancers.
What Net 14, Net 30, and due-on-receipt mean
"Net 30" means payment is due 30 days after the invoice date. "Net 14" means 14 days. "Due on receipt" means pay immediately. Shorter terms get you paid faster, but very short terms can strain client relationships if the client runs a monthly payment cycle.
Pick terms that fit your clients
- Freelancers and small projects: Net 14 is a reasonable default.
- Larger businesses with accounting departments: Net 30 is standard and expected.
- New or untested clients: consider 50% upfront, especially on big projects.
- Whatever you choose, print it on the invoice — unwritten terms are unenforceable vibes.
Write the terms in plain language
Don't just write 'Net 30' and hope. Add a line like 'Payment is due within 30 days of the invoice date.' If you charge late fees, state the rate and when it starts. Clarity up front prevents awkward conversations later.