15 Invoicing Terms Every Freelancer Must Know

15 Invoicing Terms Every Freelancer Must Know

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If you don’t get paid on time for the work that you do, you’re putting your freelance business is in jeopardy. That’s why you should be familiar with the following invoicing terms every freelancer must know. You’re going to need them to ensure that you get paid on-time – which will keep your cash flowing in. 1. Net 7, 10, 30, 60, 90. These terms are commonly used in the business world to indicate that net payment is due in either 7, 10, 30, 60, or 90 days after the invoice date. For example, if the invoice was dated April first and you used one of the most used payment terms, Net 30, then the payment would be expected before April 30. Even this is a popular term, it can still be confusing. Some believe that the specific days begin from the date the invoice is received, while others think it is from the date the invoice is issued. To avoid this problem, use a term that is more clear – such as, “Days” instead of “Net.” If you want to keep your cash flow positive, use shorter terms like, “Please make payment within 10 days.” 2. 2/10 Net 30. This term is related to Net 30. The client is still expected to make the payment within 30 days. However, it they submit payment within a shorter time frame, usually 10 days, they’ll receive a two percent discount off the invoice total. That small discount should be enough to motivate the client in making a faster payment. But, you are sacrificing two percent of the invoice amount. 3. EOM. This is short for “End of Month.” If you want to ensure that all of your invoices are paid in the same month as you completed the work, then it’s a good term to use on your invoices. On the downside, if you send out an invoice at the end of the month, you’re not giving the client much time to make the payment — which means that it probably won’t be paid on-time. Sending invoices at the beginning of the month give them more time to pay the invoice. you’ll be giving them more time. It’s probably best to only use this term if you’ve always sent out invoices on the same day of the month. 4. 15 MF. This simply means the 15th of the month following the invoice date. In other words, you’ll be paid on the 15th of every month. This term is an easy to create and stick to a budget and forecast your finances since it’s like clockwork. Just make sure that this is discussed with the client while negotiating so that you’re both on the same page. 5. Upon receipt. Invoices that are due upon receipt should be self-explanatory. You’re expecting to be paid as soon as possible after you’ve bill your client. This usually works best for smaller projects or if you have clients that usually pay within 24 hours. If you […]

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