Payment terms explained: Net 7, Net 14, Net 30
Payment terms tell your client when and how to pay. Net 7, Net 14 and Net 30 mean the full amount is due 7, 14 or 30 days after the invoice date. For most freelancers and small businesses, 7 or 14 days strikes the best balance between getting paid quickly and keeping clients happy.
Choose terms that are too long and you're effectively lending clients money. Too vague, and invoices drift. This guide decodes the jargon, compares the options and gives you wording you can copy straight onto your invoices.
Key takeaways
- 'Net 30' = full payment due 30 days after the invoice date.
- '30 days EOM' can mean waiting almost 60 days — read terms carefully.
- Shorter terms (7–14 days) generally mean faster payment.
- Always print the exact due date, not just 'Net 14'.
- Put payment terms in your contract and on every invoice.
Payment terms glossary
| Term | What it means |
|---|---|
| Due on receipt | Payment is due as soon as the invoice is received. |
| PIA (payment in advance) | Paid in full before work starts or goods ship. |
| COD (cash on delivery) | Paid when the goods or service are delivered. |
| Net 7 / Net 14 / Net 30 | Full amount due 7, 14 or 30 days after the invoice date. |
| EOM (end of month) | Due at the end of the month the invoice is issued. |
| 30 days EOM | Due 30 days after the end of the invoice month. |
| Deposit / instalments | Part paid upfront, the rest on milestones or completion. |
| 2/10 Net 30 | 2% discount if paid within 10 days; otherwise full amount in 30. |
Net 7 vs Net 14 vs Net 30
Net 7
Best for: freelancers, tradies, small one-off jobs and new clients. Fast cash flow and a clear signal that you expect prompt payment. Some larger organisations' payment runs can't meet it.
Net 14
Best for: most small businesses and ongoing clients. A common middle ground — quick enough for healthy cash flow, long enough for most accounts teams.
Net 30
Best for: larger clients and corporate accounts that require it. Easy to accept, but you'll wait a month (or longer) for your money. If you agree to it, ask for a deposit on bigger jobs.
How to choose your payment terms
business.gov.au recommends setting terms that tell customers which payment methods you accept, when you expect payment, whether you offer credit, and how you collect overdue payments. Ask yourself:
- How healthy is your cash flow? If you can't comfortably wait 30 days, don't offer 30 days.
- Who's the client? New and smaller clients → shorter terms. Large organisations may insist on longer ones — negotiate a deposit in return.
- How big is the job? For larger projects, use a deposit plus milestone payments.
- What's normal in your industry? Ask peers or your industry association.
Then put the terms in your contract and on every invoice. Payment terms form part of your agreement — agreeing them upfront makes chasing late payments far easier later.
Payment terms wording you can copy
Paste one of these into the footer of your invoice (and your quotes):
Payment terms: 14 days. Please pay by [5 November 2026].
Pay by bank transfer — BSB [000-000] · Account [00000000]
Please use invoice number [INV-0042] as the reference.Payment terms: 50% deposit due before work begins.
Balance due within 7 days of project completion.Payment due on receipt.
Questions about this invoice? Contact [email] within 7 days.Make sure the rest of the invoice is right too — here's everything a tax invoice must include.
Late fees and interest
Late fees and interest generally only work if they were clearly agreed before the work started — typically in your contract or terms of trade. Springing a fee on a client after the fact is likely to cause a dispute. If you want to use them, put them in writing upfront and consider getting advice.
In practice, most small businesses get better results from short terms, easy payment options and timely reminders than from penalties.
Quick tips to get paid faster
- Invoice the day the work is done.
- Print the exact due date on every invoice.
- Offer more than one payment method — bank transfer and card.
- Send a reminder a few days before the due date.
- Use deposits for larger jobs.
Just starting out? Our sole trader invoicing guide walks through the whole setup.
Frequently asked questions
What does Net 30 mean?
Net 30 means the full invoice amount is due 30 days after the invoice date. Net 7 and Net 14 work the same way, with 7 and 14 days.
What are the most common payment terms in Australia?
There's no single standard. business.gov.au gives examples such as payment up front, instalments, on delivery, or within 7, 14, 21 or 30-odd days. Many freelancers and tradies use 7 or 14 days, while larger businesses often ask for 30.
What does EOM mean on an invoice?
EOM means 'end of month'. For example, '30 days EOM' usually means payment is due 30 days after the end of the month in which the invoice was issued — which can be nearly 60 days after you send it.
Can I charge a late fee?
Generally only if it was clearly agreed in your contract or terms before the work started. Put any late payment terms in writing upfront and seek advice if unsure.
What payment terms should a freelancer use?
Shorter terms like 7 or 14 days usually lead to faster payment. Combine them with a deposit for larger projects, a clear due date on every invoice, and more than one way to pay.
This article is general information only, not tax, legal or financial advice. Rules change — check the linked ATO and business.gov.au pages or speak to a registered tax agent about your situation.