Payment terms tell your client when you expect to be paid and, in most countries, determine when your legal right to interest kicks in if they don’t. Getting them right matters more than most first-time freelancers expect.
The most common terms
NET 30 / NET 14 / NET 7 — payment is due within 30, 14, or 7 days of the invoice date. The word “NET” just means the full amount, no deductions. NET 30 is common for larger corporate clients; NET 14 is standard for most freelancers; NET 7 works for small, fast-turnaround work.
Due on receipt — payment is expected when the invoice is received. In practice most clients interpret this as “within a few business days.” Suitable for one-off small amounts, not ongoing client relationships where predictability matters to both sides.
End of month (EOM) — payment is due on the last day of the month in which the invoice was issued. Some larger companies run monthly payment cycles regardless of invoice date; specifying EOM avoids confusion about which cycle your invoice falls into.
What’s standard by country
In Germany, §271 BGB gives debtors 30 days from receipt of invoice to pay if no terms are specified — write nothing, and a court will read in 30 days. Writing “zahlbar sofort” (due immediately) shortens this only in theory; most clients ignore it in practice. NET 14 or NET 30 is what most freelancers actually use.
In the UK, the default under the Late Payment of Commercial Debts (Interest) Act 1998 is also 30 days. Payment terms beyond 60 days must be agreed in writing and can only be imposed if they’re not grossly unfair.
Cash discount (Skonto)
Skonto is a discount offered in exchange for early payment. The format is standard: 2% 10 days, NET 30 means the client can pay 2% less if they pay within 10 days, or the full amount within 30 days.
Skonto is common in Germany and Austria, less so elsewhere. It works best with clients who have predictable payment runs and a finance team watching cash flow. For individual freelancers invoicing SMBs, the administrative complexity rarely justifies the minor incentive.
What to write on the invoice
State the due date explicitly — not “NET 30” but the actual date: Payment due by 25 August 2026. Clients process invoices faster when the deadline is a specific date rather than an interval they have to calculate.
In Germany, §14 UStG also requires the period in which the service was delivered (Leistungszeitraum) on the invoice. This is not the same as the invoice date and is frequently missed.
What you can charge if a client pays late
In Germany and the EU, you’re entitled to statutory late payment interest from the first day after the deadline without any need to issue a formal warning first — 9 percentage points above the current base rate for B2B transactions (§288 BGB). You’re also entitled to a flat €40 recovery fee per overdue invoice, regardless of the amount owed.
For the full sequence — reminder, formal demand, debt collection — see our guide on following up on unpaid invoices.
In Billino
Set your payment terms once in your sender profile — Billino calculates the due date automatically and prints it on every invoice. You can override it per invoice when you need different terms for a specific client.
