Freelance Payment Terms 101 — Net 14, Net 30, Deposits, Milestones
Payment terms aren't admin — they're the foundation of your cash flow. The terms you set on day 1 determine whether you spend more time chasing money than doing the work.
Net 14, Net 30, Net 60 — what they actually mean
Net X means "payment is due X days after the invoice issue date".
- Net 14 — fast, common for solo freelancers, respectful for short engagements
- Net 30 — global B2B standard, accepted by 95% of mid-sized clients
- Net 45 — large enterprise default; push back if you can
- Net 60+ — kills cash flow for solo freelancers, only for very strong relationships
Deposits: the single best cash-flow trick
On any project over $1,000, take a 50% deposit at kickoff. This is non-controversial in design, dev, photography and consulting. The structure looks like:
- 50% on signed contract / kickoff
- 50% on final delivery
For longer projects (3+ months), use milestone billing instead — bill 25–33% on each major milestone.
Milestone billing — for projects 3+ months
Break the project into 3–4 named milestones with deliverables and percentages:
- 25% — Discovery & strategy phase complete
- 25% — Design phase complete (signed off in writing)
- 25% — Build phase complete
- 25% — Final delivery + handoff
Tie each milestone to a tangible, signable deliverable. Don't tie them to dates.
How to negotiate shorter terms
When a client asks for Net 60 and you want Net 30:
- Counter-offer: "We can accept Net 30 with 2% net-7 discount" — they get a 2% discount if they pay within 7 days.
- Or split the difference: 'How about 50% upfront, balance Net 30?'
- If they refuse: charge a 5% premium for Net 60. Make the cost of credit explicit.
Frequently asked questions
- What payment terms should I use for new clients?
- Net 14 with a 50% deposit on any project over $1,000. New clients get the strictest terms — you can soften over time as trust grows.
- Can I really refuse Net 60?
- Yes — politely. Larger companies that default to Net 60 often have flexibility for smaller suppliers. Counter with "Net 30 with 2% discount for Net 7" and you usually land on Net 30."
Ready to send a great invoice?
Open the GJAM Invoice Generator and apply what you just read. The first 5 PDFs are free.
Keep reading
- 7 min read
How to Invoice a Client (the Right Way) — A 2026 Freelancer Guide
An invoice isn't just a document — it's the last design decision in any client engagement. Get it wrong and payment slows down. Get it right and clients pay on time without follow-up.
- 6 min read
Late Payment Fees — How to Charge Them (Legally and Politely)
Late fees aren't about the money — they're about behaviour. The threat is the deterrent. Here's how to set them up correctly so they actually work.
- 8 min read
GST Invoice Format India — A Practical Guide for Freelancers
The Indian GST regime is precise but not complicated. Get six fields right and your invoices will breeze through any GST audit — here are those six fields, with examples.