You did the work. You sent the invoice. Now... you wait. But how long you wait depends entirely on a small, easy-to-miss field on your invoice called "Terms."
What you put in that box dictates when you eat. Understanding these codes is the first step to managing your cash flow and preventing the "feast-or-famine" cycle that plagues so many freelancers.
Common Terms Defined
Due Upon Receipt
Meaning: The client must pay immediately (usually within 24-48 hours).
Best For: Small amounts, one-off projects, or new clients you don't trust yet.
Risk Level: Lowest for you. Some corporate clients cannot process this speed, so use it selectively.
Net 15
Meaning: Due in 15 days from the invoice date.
Best For: Small to medium businesses. It gives them a pay cycle to process it, but doesn't leave you waiting a full month.
Risk Level: Low. This is a good middle ground for most freelance relationships.
Net 30
Meaning: The net (full) amount is due 30 days after the invoice date.
Best For: Corporate clients. Large companies have accounting cycles (they might only cut checks on the 1st and 15th). Asking them for "Due on Receipt" is often impossible for them to process.
Risk Level: Medium. 30 days is a long time to wait for cash, especially if you have bills due.
The "2/10 Net 30" Trick
Want to get paid faster? Use this specialized term.
It translates to: "The full amount is due in 30 days, BUT if you pay within 10 days, you get a 2% discount."
Why it works: Smart CFOs love this. A 2% risk-free return on their cash in 10 days annualizes to a ~73% return—better than any bank or investment. They will prioritize your invoice over others just to capture that 2%. If you have cash flow issues, giving up 2% profit is often worth getting the cash 20 days early.
You can configure these terms easily in the settings of our Invoice Generator.
Which Terms Should YOU Use?
- New client, first project: Due Upon Receipt or Net 15 + 50% deposit upfront
- Established client, regular work: Net 15 or Net 30
- Corporate/enterprise client: Net 30 (they often dictate terms—negotiate down to Net 15 if possible)
- Cash flow is tight: Use "2/10 Net 30" to incentivize early payment