payment terms

What is payment terms?

Payment terms are the conditions under which a seller expects to be paid, including the due date, accepted payment methods, late fee policies, and early payment discounts.

Payment Terms explained

Payment terms set expectations upfront and reduce disputes later. Common terms for freelancers: Net 15, Net 30, Due on Receipt, 50% upfront / 50% on delivery. The terms you choose directly affect cash flow — Net 15 collects roughly twice as fast as Net 30. Always include payment terms in your contract AND on the invoice itself.

Example

A freelancer's standard terms: 'Net 15. Late payments accrue 1.5% per month after the due date. Accepted: bank transfer, credit card via Stripe. A 50% deposit is required before work begins on projects over $5,000.'

How this connects to Clockout

Clockout lets you set payment terms per client. Due dates calculate automatically. Automated reminders follow the terms you set — so Net 15 clients get reminded at 18, 22, and 29 days while Net 30 clients get reminded at 33, 37, and 44 days.

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Related terms

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Net 30

Net 30 is a payment term meaning the full invoice amount is due within 30 days of the invoice date.

Net 15

Net 15 is a payment term meaning the full invoice amount is due within 15 days of the invoice date.

Late Fees

Late fees are penalties charged to clients who do not pay invoices by the due date, typically expressed as a monthly percentage of the outstanding balance.