Payment terms tell the client when and how to pay. "Due on receipt" and "Net 7" get paid fastest and suit freelancers and trades; "Net 30" is the corporate norm. State the due date as an actual date, add a late payment clause and a deposit for larger jobs, and put the terms on the quotation as well as the invoice.
Common terms and what they mean
| Term | Meaning | Typical use |
|---|---|---|
| Due on receipt | Pay as soon as the invoice arrives | Freelancers, small jobs |
| Net 7 / Net 14 | Pay within 7 or 14 days of the invoice date | Trades, agencies, consultants |
| Net 30 | Pay within 30 days | Corporate clients, suppliers |
| EOM / 30 days EOM | Pay at the end of the month, or 30 days after month end | Retail suppliers, wholesale |
| COD | Cash on delivery | Goods and deliveries |
| 50% deposit, balance on completion | Half upfront, half when done | Projects, events, construction |
| Milestone billing | Invoice at agreed stages | Longer projects |
Which terms get paid fastest
Shorter terms get paid sooner, and a specific due date ("Due 27 September 2026") outperforms a phrase ("30 days"). Larger clients will often insist on their own terms; if you accept Net 30 or longer, build it into your pricing and cash flow rather than hoping they pay early.
Deposits
A deposit filters out clients who were never going to pay and funds the materials or time you commit upfront. For new clients, 50% is normal in creative and trade work; for repeat clients, 30% or none. Invoice the deposit as its own invoice against the accepted quotation.
Late payment clauses in South Africa
You may charge interest on overdue amounts if your terms say so and the client agreed to them (which is why the terms must appear on the quotation, not just the invoice). Absent an agreed rate, the prescribed rate of interest applies, which is linked to the repo rate plus 3.5%. Keep the clause simple: "Overdue amounts attract interest at 2% per month." See how to chase late payments.
Make it easy to pay
- Show full banking details and ask for the invoice number as the reference.
- Send the invoice the day the work is done, not at month end.
- Set up automatic reminders on the due date and a week after.
- For recurring clients, agree a debit date and invoice on the same day each month.
Due dates, reminders and overdue tracking, built in.
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