It’s commonly said that cash is king when running a business and as a result getting paid on time is extremely crucial. Therefore, as a rule of thumb ensuring the payment process is as seamless as possible so that invoices are paid on time is essential. One way to ensure that this happens is to establish proper net payment terms. , for instance, Net 30 is one of the common terms where the clients are told to settle their outstanding invoices at least within 30 calendar days. In this blog post we will share net 30 payment term templates and examples that you can copy and paste on your invoices to simplify the invoicing process. Let’s get started.
Table of Contents:
- Definition of “Net 30” Payment Terms
- Net 30 Payment Term Template that you can copy and paste
- Other Payment Term & Sample Templates You Can Copy & Paste
- How to Include Payment Terms in Your Invoices
- Conclusion
Definition of “Net 30” Payment Terms:
As the term implies, net 30 is a payment obligation that requires a client to pay the invoice within a period of 30 days. It provides a timeframe within which a freelancer is compensated after delivering their work or services. This term tends to cut across a number of industries and acts as a guide for most payment arrangements.
Net 30 Payment Term Template that you can copy and paste:
- Payment is required within thirty (30) days of the invoice date. If payment has not been received within 30 days a penalty will be applied. Any inaccurate billing information such as wrong billing address must be reported within ten (10) days from the date the report was issued.
- Net 30 payment terms apply. Invoices are due within thirty (30) days from the date of issuance. A late fee of [insert late fee amount or percentage] will be charged for payments not received by the due date.
Other Payment Term & Sample Templates You Can Copy & Paste:
Net 15 Payment Terms:
The client must pay the invoice maximum of 15 days under Net 15 payment terms.
This kind of payment term is perfect for projects with a shorter lead time and clients who wish to have a quicker payment schedule. It enables freelancers to get paid in a short duration of time hence maintaining cash low.
Sample Net 15 Payment Template: All payments must be made within a period of 15 days from the date of invoice. Any payments made after the set date shall attract a late fee of [insert late fee percentage].
Net 60 Payment Terms:
The Net 60 payment term gives the client 60 days to settle outstanding invoices.
Best suited for large projects or when an organization is dealing with a corporation that has a long payment time frame, the simple net 60 terms allow for flexible time frames but still give the freelancer a set time for payment.
Sample Net 60 Payment Terms: Invoices are due within sixty (60) days from the date of issuance. In case payment is made after the specified time frame, a late fee of [ insert late fee amount or percentage] will be imposed.
Due on Receipt Payment Terms:
A due upon receipt of the payment means that the amount is payable instantly as soon as the invoice is issued.
Best suited for projects that are urgent or clients that are ready to make payments at once, the due on receipt term makes certain that freelancers do not have to wait for long durations to be paid.
Sample Payment Terms: Payment is due upon receipt of the invoice. Late payments may incur a [insert late fee amount or percentage] late fee.
30/60/90 Days Payment Terms:
The 30/60/90 days payment terms provide the client with payment provisions of thirty sixty or ninety days from the invoice date.
Such terms provide flexibility to clients having different payment cycles and also for such projects which are more long term in nature. It allows freelancers to accommodate clients with different financial structures or budgetary constraints.
Sample Payment Terms: Payment post invoice is required to be done within [30/60/90] days. Any payment past the discussed time will attract [insert late fee amount or percentage] of late fee.
Progressive Payment Terms:
There are different stages in progressive payment terms where the client is required to make payments when certain stages or milestones in the project are achieved.
Suitable for large-scale projects or projects with multiple stages, the Progressive Payment Terms ensure a steady cash flow throughout the project duration and minimize financial risks for freelancers by securing partial payments at key milestones.
Sample Progressive Payment Terms: Payment schedule: [Insert milestones and corresponding payment percentages]. Late payments may affect project timelines.
7-Day Payment Terms:
7-day payment terms allows the clients to pay for their invoices within seven days after issuance of the invoice
These forms are best for projects which are of great importance or get clients who wish to pay in shorter time. They help get the payment faster creating a short time for the payment to be done so that the freelancer has money at the right time.
Sample 7-Day Payment Term Template: Payment is due within seven (7) days from the date of invoice. Late payments may incur a [insert late fee amount or percentage] late fee.
14-Day Payment Terms:
Clients have fourteen days to make payments starting from the day the client receives the invoice.
These terms are suitable for projects with moderate urgency or clients who require slightly longer payment windows. They strike a balance between prompt payment and allowing clients a reasonable timeframe for processing payments.
Sample Payment Terms: Invoices are due within fourteen (14) days from the date of issuance. A late fee of [insert late fee amount or percentage] will be charged for payments not received by the due date.
How to Include Payment Terms in Your Invoices:
If you use CheckYa for invoicing, you can copy paste the above payment terms by following the steps given below:
- Log in to CheckYa: Head over to your CheckYa account to sign into your dashboard or sign up here if you don’t have an account.
- Creating a New Invoice: From your left dashboard look for the Invoice tab and then click on ‘Create New Invoice’.
- Enter Client Details: Add details about your clients, such as their name, address, or contact numbers.
- Outline Services and Costs: Clearly list the services provided and their costs.
- Add Payment Terms: In the Invoice Template, mention the payment terms that apply to your invoices; any payment term stated above may best suit you.
- Review and Send: Double-check the invoice and then send it directly to your client’s email via CheckYa.
Conclusion:
By using the different payment terms outlined in this blog above, you can get your next invoice paid on time. With tools like CheckYa you can add the desired payment term, send automated reminders, invoice your clients with ease and get paid easily.
