The rules stating when and how a client must pay an invoice, such as net-30, due on receipt, or a deposit plus balance.
Payment terms are the rules for when and how you get paid. They cover the timing (net-30, due on receipt), the structure (deposit plus balance, or milestones), the method (ACH, card, wire), and any late fee. They belong on every invoice and in every contract.
For sellers, your terms are a negotiating tool, not a fixed law. A new client with no track record might get “50% deposit, balance due on receipt”; a trusted repeat client might earn net-30. Set terms that protect your cash flow. For buyers, clear terms tell you exactly what you’re agreeing to — read them before you sign, not after the first invoice lands.
The mistake is leaving terms unspoken and hoping. “I’ll send an invoice when we’re done” says nothing about deposits, due dates, or what happens if you’re not paid. Decide your defaults once — our deposits and payment schedules guide helps — and put them in writing every time.