Guide
How to set clear payment terms on your invoices
Most late payments start with unclear terms. Setting them out clearly takes a few minutes and saves weeks of chasing.
What every invoice should show
- A unique invoice number and the issue date
- Your name or business name and the client's name
- A short description of the work and the amount for each item
- The total, with the currency stated
- The due date, written as a date and not only as "net 30"
- How to pay: bank details or the payment link you accept
Choose a due period that fits the job
Common choices are due on receipt, 7, 14 or 30 days. Shorter periods suit small jobs. Larger clients often have their own cycle, so ask early when they pay invoices and whether they need a purchase order number.
Agree terms before the work starts
Put the payment terms in a short written agreement or in the quote the client accepts. For bigger projects, consider a deposit or staged payments. A client who has agreed to the terms in writing is easier to remind.
Late fees
You can state a late fee, but only if the client agreed to it in advance, and the rules differ by country. Check local rules before adding one. Many freelancers simply skip the fee and use it only as a reason to keep the schedule.
Send invoices promptly
The clock starts when the client receives the invoice, so send it as soon as the work is done, to the person who actually approves payments.
Keep track
Record each invoice and its due date so you know when a reminder is due. The payment follow-up how-to shows how to do this in Daymark.