Your client just emailed asking for Net 60 payment terms. You pause. That means waiting two months to get paid for work you will finish next week.
You need the project, but your cashflow cannot wait 60 days. What do you say?
This is one of the most common sticking points in freelancing. Clients default to whatever terms suit their finance team. You default to whatever keeps the lights on. Those two things rarely match.
The good news: payment terms are negotiable. And when you understand the options, you can set boundaries that protect your cashflow without losing good clients.
This guide walks through the payment terms UK freelancers actually use, when to use each one, how to write them on your invoice and in your contract, and what to say when clients push back.
Why payment terms matter more than you think
Payment terms control your cashflow. That is the entire game.
If every client pays Net 30, and you invoice at the end of each project, you are always working one month ahead of your bank balance. When an unexpected expense hits, you have no buffer.
If you take deposits and invoice at milestones, you get paid while the work is happening. That changes everything.
Most freelancers think about payment terms as something the client decides. Wrong. You decide. The client can ask for changes, but the starting position is yours.
The earlier you set clear terms, the fewer problems you will have collecting payment later.
The five payment terms UK freelancers use
Here are the options, from fastest payment to slowest.
Due on receipt
Payment is expected as soon as the invoice is issued. No waiting period. You send the invoice, they pay the same day or within 24 hours.
When to use it:
✓ Monthly retainers billed at the start of the month
✓ Small jobs under £500
✓ Trusted repeat clients
✓ When you are delivering something instantly (a logo file, a website handoff)
When not to use it:
Projects over £1,000 where the client needs internal approval. Large companies rarely pay on receipt because their finance process is slower than that.
Example wording for invoice:
Payment due on receipt. Bank transfer to [Your Name], Sort code 04-00-04, Account 12345678.
Net 7
Payment due within 7 calendar days from the invoice date.
When to use it:
✓ Project invoices under £3,000
✓ Clients you trust but who need a few days to process payment
✓ When you want to signal you track payments closely
This is a good default for most freelancers. It is fast enough to keep cashflow moving, but gives clients enough time to get approval and process the payment.
Example wording for invoice:
Payment due within 7 days. Invoice date: 1 September 2026. Due date: 8 September 2026.
Net 14
Payment due within 14 days. This is the sweet spot for most UK freelancers.
When to use it:
✓ Project invoices between £1,000 and £5,000
✓ Clients with slower finance teams (agencies, mid-size companies)
✓ When Net 7 feels too tight but Net 30 feels too slow
Net 14 is common enough that clients rarely push back, but fast enough that you are not waiting a month to get paid.
Example wording for invoice:
Payment terms: Net 14. Invoice issued 1 September 2026. Payment due by 15 September 2026.
Net 30
Payment due within 30 days. This is corporate standard.
When to use it:
✓ Large brands and enterprise clients who will not budge on payment terms
✓ Public sector contracts
✓ Projects over £5,000 where the client needs time to process invoices
Net 30 is fine if your cashflow can handle it. If you are just starting out and every invoice matters, push back. You can often negotiate down to Net 14 or Net 21.
Example wording for invoice:
Payment terms: Net 30. Invoice date: 1 September 2026. Due date: 1 October 2026.
Net 60, Net 90, or longer
Some clients — especially large corporates and public sector — default to 60 or 90 days.
When to use it:
Only when the project is large enough to justify the cashflow hit, or when you have no choice because the client is non-negotiable.
When not to use it:
For most freelancers, Net 60 is too long. You are essentially giving the client an interest-free loan. Unless the project is worth it, push back or walk away.
What to say when a client demands Net 60:
"I understand that is your standard process, but my payment terms are Net 14. I can stretch to Net 30 for this project if that helps, but I cannot extend beyond that without affecting my cashflow. Would Net 30 work?"
If they refuse, you have three options:
- Accept it and build the cashflow delay into your planning.
- Ask for a larger deposit (60–70%) to offset the long payment window.
- Walk away and find a client who pays faster.
Deposits and milestone invoicing — the cashflow fix
The best way to protect your cashflow is to stop invoicing only at the end.
Deposits
Take 40–50% upfront on any project over £1,000.
Deposits do three things:
✓ They protect you if the client ghosts mid-project.
✓ They filter out bad actors — serious clients pay deposits without fuss.
✓ They keep money coming in while you work, instead of after.
Example wording for contract:
A non-refundable deposit of 50% (£1,200) is due before work begins. The remaining 50% (£1,200) is due upon project completion, with payment terms of Net 14.
Example wording for invoice (deposit invoice):
Deposit invoice (50% of total project fee). Payment due on receipt to secure project start date. Remaining balance of £1,200 will be invoiced upon completion.
Milestone invoicing
For projects longer than four weeks, break the payment into 2–3 milestones.
Instead of invoicing £6,000 at the end, invoice £2,000 at the start, £2,000 at mid-point, and £2,000 at delivery.
Smaller invoices are easier for clients to approve. And you get paid while the work is happening, not after.
Example milestone structure for a two-month branding project (£4,800 total):
✓ Milestone 1 (start): 40% — £1,920. Discovery, moodboards, initial concepts.
✓ Milestone 2 (mid-point): 30% — £1,440. Chosen concept refinement, brand guidelines draft.
✓ Milestone 3 (delivery): 30% — £1,440. Final files, handoff, and support.
Each milestone invoice should reference the contract, state which milestone it covers, and show the payment terms clearly.
Where to write payment terms — invoice and contract wording
Payment terms should appear in two places: your contract (before the work starts) and your invoice (when you bill).
In your contract
Spell out the deposit, milestone schedule, and payment terms before you start work.
Example clause for contract:
Payment Terms
The total project fee is £2,400.A deposit of 50% (£1,200) is due upon signing this agreement. Work will not commence until the deposit is received.
The remaining 50% (£1,200) will be invoiced upon project completion. Payment is due within 14 days of the invoice date (Net 14).
Late payments are subject to statutory interest and debt recovery costs under the Late Payment of Commercial Debts (Interest) Act 1998.
For a full contract template and clause checklist, see our freelance contract template guide.
On your invoice
Make the due date impossible to miss. Show both the payment term (Net 14) and the actual calendar date.
Example invoice wording:
Invoice: INV-2026-045
Invoice date: 3 September 2026
Due date: 17 September 2026
Payment terms: Net 14Payment details:
Bank transfer to Northline Studio
Sort code: 04-00-04
Account number: 12345678Payment is due by 17 September 2026. Late payments may incur statutory interest and recovery costs under the Late Payment of Commercial Debts Act.
For more on building a complete invoice, see our freelance invoice template guide.
Real cashflow scenarios — why terms matter
Let's compare two freelancers working the same projects with different payment terms.
Scenario A — No deposits, Net 30 on everything
Oak Studio (fictional example) takes on three projects in September:
- Project 1: £2,000, invoiced 30 September, paid 30 October (Net 30).
- Project 2: £1,500, invoiced 30 September, paid 30 October.
- Project 3: £3,000, invoiced 30 September, paid 30 October.
Total billed in September: £6,500
Total received in September: £0
Total received in October: £6,500
Oak Studio worked all month and saw no money until the following month. If rent is due on 1 October, they are relying on savings or previous income to cover it.
Scenario B — 50% deposits, Net 14 on final invoices
Northline Studio (fictional example) takes the same three projects but uses deposits and Net 14 terms:
- Project 1: £1,000 deposit paid 1 September (start). £1,000 final invoice issued 30 September, paid 14 October (Net 14).
- Project 2: £750 deposit paid 1 September. £750 final invoice issued 30 September, paid 14 October.
- Project 3: £1,500 deposit paid 1 September. £1,500 final invoice issued 30 September, paid 14 October.
Total received in September: £3,250 (all deposits)
Total received in October: £3,250 (final invoices)
Northline Studio had money coming in while the work was happening. That is the difference.
UK late payment law — what you can claim
UK freelancers have statutory rights when business invoices go unpaid. You do not need to write these terms into your contract. The law gives them to you automatically.
Payment deadlines
If you invoice a business (B2B), they must pay within 60 days unless your contract says otherwise. Most freelancers set shorter terms (Net 7, Net 14) and that overrides the 60-day default.
If you invoice the public sector, the deadline is 30 days.
Once payment is overdue, you can claim interest and recovery costs.
Statutory interest
You can charge Bank of England base rate plus 8% per year on overdue invoices.
As of September 2026, the base rate is 3.75%, so statutory interest is 11.75% per year (roughly 0.98% per month).
Example:
Invoice: £1,900
Due date: 15 September 2026
Paid: 15 October 2026 (30 days late)
Interest (30 days at 11.75% p.a.): £18.40
Debt recovery costs
You can claim a fixed fee for chasing the debt:
✓ £40 for debts under £1,000
✓ £70 for debts between £1,000 and £9,999.99
✓ £100 for debts over £10,000
So on that late £1,900 invoice, you could claim:
- Original invoice: £1,900
- Statutory interest: £18.40
- Debt recovery costs: £70
- Total due: £1,988.40
Source and disclaimer
This comes from the Late Payment of Commercial Debts (Interest) Act 1998. Full guidance is available on GOV.UK Late Commercial Payments.
This guide is not legal advice. For complex or large debts, consult a solicitor.
For a full step-by-step guide to chasing late invoices, including copy-paste email templates, see our guide on how to chase a late invoice.
What to say when clients push back
You send your contract. The client replies: "Our standard terms are Net 60. Can you match that?"
Here is what to say.
Push back calmly
"I understand that is your internal policy. My standard terms are Net 14, which helps me manage cashflow. I can stretch to Net 30 if needed, but I cannot extend beyond that without it affecting my ability to deliver for other clients. Would Net 30 work?"
Most clients will accept Net 30 when you frame it as a compromise.
Offer a deposit as the middle ground
"If Net 60 is non-negotiable on your end, I would need to take a larger deposit upfront — 60% instead of my usual 50% — to offset the longer payment cycle. Would that work?"
This shifts the risk. If they want you to wait 60 days for most of the money, they need to pay more upfront.
Know when to walk away
If the client refuses to budge and the payment terms will genuinely hurt your cashflow, it is okay to walk away.
"I appreciate you considering me for this project, but I am not able to work on Net 60 terms at this stage. If your payment terms change in future, I would love to work together. All the best."
Good clients respect boundaries. Bad clients see them as negotiation tactics. You want to work with the first group.
Copy-paste payment terms — contract and invoice wording
Here is ready-to-use wording you can drop into your contracts and invoices.
Contract clause — fixed-price project with deposit
Payment Terms
Total project fee: £X,XXX.A deposit of 50% (£X,XXX) is due upon signing this agreement. Work will commence once the deposit is received. The deposit is non-refundable once work begins.
The remaining 50% (£X,XXX) will be invoiced upon project completion and is due within 14 days of the invoice date (Net 14).
Late payments are subject to statutory interest and debt recovery costs under the Late Payment of Commercial Debts (Interest) Act 1998.
Contract clause — milestone project
Payment Terms
Total project fee: £X,XXX, paid across three milestones:Milestone 1 (Project start): 40% (£X,XXX) — due on receipt upon signing this agreement.
Milestone 2 (Mid-point review): 30% (£X,XXX) — due within 14 days of milestone completion (Net 14).
Milestone 3 (Final delivery): 30% (£X,XXX) — due within 14 days of final handoff (Net 14).Work on each phase will not commence until the prior milestone payment is received.
Late payments are subject to statutory interest and debt recovery costs under the Late Payment of Commercial Debts Act 1998.
Invoice wording — final invoice with Net 14 terms
Invoice: INV-2026-XXX
Invoice date: 3 September 2026
Due date: 17 September 2026
Payment terms: Net 14Total due: £1,900
Payment details:
Bank transfer to [Your Name or Studio Name]
Sort code: XX-XX-XX
Account number: XXXXXXXXPayment is due by 17 September 2026. Late payments may incur statutory interest and recovery costs under the Late Payment of Commercial Debts (Interest) Act 1998.
Invoice wording — due on receipt (retainer)
Invoice: INV-2026-RET-09
Invoice date: 1 September 2026
Due date: 1 September 2026 (due on receipt)
Service month: September 2026Total due: £1,800
Payment details:
Bank transfer to [Your Name]
Sort code: XX-XX-XX
Account number: XXXXXXXXOr pay by card: [Stripe/PayPal link]
Payment is due on receipt. This retainer covers up to [X deliverables] per month as agreed.
Common mistakes that lead to payment delays
Vague terms. Writing "payment due soon" or "within a reasonable timeframe" on your invoice means nothing. Always state the exact due date.
No written agreement. If you start work without a signed contract, you have no proof of the payment terms. The client can invent their own.
Invoicing too late. If you finish a project on 1 September but do not send the invoice until 15 September, you have just added two weeks to your payment wait. Invoice immediately.
Not chasing promptly. If the invoice is overdue and you wait another week before following up, you are teaching the client that late payment is fine. Chase the day after the due date. For email templates and a day-by-day chase system, see how to chase a late invoice.
Accepting payment terms that hurt you. If a client demands Net 90 and you agree without pushing back, you are telling them your cashflow does not matter. It does.
When to use each payment term — decision tree
Here is a quick reference guide:
| Project type | Recommended terms | Why |
|---|---|---|
| Retainer under £2,000/month | Due on receipt or Net 7 | Keeps cashflow predictable |
| One-off project under £500 | Due on receipt | Small enough to pay fast |
| Project £500–£3,000 | 40–50% deposit + Net 14 final | Protects cashflow, fair to both sides |
| Project over £3,000 | Milestone invoicing (3 invoices) | Breaks large sums into smaller, easier approvals |
| Corporate client (non-negotiable) | Net 30 max | Any longer and your cashflow suffers |
| Public sector | Net 30 (their legal max is 30 days) | You can hold them to this |
| Client you do not fully trust | 50% deposit, Net 7 final | Minimises risk |
Before you send your next invoice — checklist
✓ Payment terms are written clearly (both Net X and the calendar due date)
✓ Your bank details are visible (sort code, account number)
✓ If this is a deposit or milestone invoice, it says so explicitly
✓ Late payment wording is included (statutory interest clause)
✓ Payment terms match what you wrote in the contract
✓ You are ready to follow up the day after the due date if they do not pay
Related guides
Once your payment terms are set, you need a complete invoice. For a full UK invoice template with GOV.UK compliance and VAT guidance, read our freelance invoice template guide.
Before you invoice, you need a contract that locks in the payment terms. See our freelance contract template guide for clause-by-clause wording.
And if you are setting payment terms before you have even won the project, a clear proposal helps. See how to write a freelance proposal for a structure that converts.
SoloPad helps UK freelancers set clear payment terms, track overdue invoices, and send automatic reminders — so you spend less time chasing and more time working. Pricing: Starter £5/month, Solo £12/month, Pro £29/month. Try free for 30 days. Questions? info@solopad.io
Sources and references
Research, official guidance, and keyword data used while writing this guide:
- GOV.UK — Late commercial payments: charging interest and debt recovery
- GOV.UK — Invoicing and taking payment from customers
- Bank of England — Bank Rate (3.75% as of September 2026)
- Late Payment of Commercial Debts (Interest) Act 1998 — statutory framework for late payment rights
Method note: Keyword demand data for "invoice payment terms," "Net 30 meaning," and related queries was gathered via Ubersuggest (United Kingdom, September 2026). Payment term decision trees, contract wording, and cashflow examples above are original SoloPad editorial content.
This article is for general education. It is not legal, tax, or financial advice. Payment terms and late payment rules may vary by contract and jurisdiction. When in doubt, consult a solicitor or accountant.