Most freelancers and agencies spend hours chasing unpaid invoices — yet the simplest fix is often right at the top of the invoice itself: clear, enforceable payment terms. When your terms are vague, clients don't feel urgency. When they're specific, payment comes faster.
This guide explains how to set payment terms that work in the Indian market and what to write on every invoice you send.
What are payment terms?
Payment terms tell your client when payment is due and how to pay. They appear on your invoice and — ideally — in your contract. Common formats:
- Due on receipt — payment expected immediately on invoice delivery.
- Net 7 / Net 15 / Net 30 — payment due 7, 15, or 30 days after the invoice date.
- 50% upfront, 50% on delivery — a split often used for project-based work.
In India, "Net 30" is common in corporate contexts but can be pushed to 60–90 days by large companies. For freelancers and small agencies, shorter terms (Net 7 or Net 15) are almost always better.
What terms should Indian freelancers use?
The right terms depend on your relationship with the client and the nature of the work.
- New clients: Net 7, or 50% upfront with the balance due on delivery. Never Net 30 with a new client — you have no payment history with them.
- Ongoing retainer clients: Due on receipt, or Net 7. Monthly retainers should be paid before or at the start of the month, not weeks after.
- Project-based work: 30–50% upfront, balance on project completion or delivery. This protects you if the client goes quiet.
- Large corporate clients: Net 15 or Net 30 is often their standard process. Try to negotiate Net 15 and build it into your rate if they insist on 30.
What to write on your invoice
Your invoice should clearly state:
- Payment due date — a specific date, not just "Net 30". Example: "Payment due by 15 April 2025".
- Accepted payment methods — UPI ID, bank account details, or a payment link. The easier you make it, the faster you get paid.
- Late payment note — optional but effective: "Invoices unpaid after 14 days may incur a late fee of 2% per month." Even if you never enforce it, the mention shifts behaviour.
Example invoice footer:
Payment due by: 10 April 2025 | Pay via UPI: yourname@upi or use the payment link above. For queries, contact hello@yourname.in.
The gap between terms and reality
Setting terms is step one. Enforcing them is where most freelancers struggle. A client sees "Due 15 April" and does nothing. Without a follow-up, the invoice ages into a chase.
The most effective enforcement is a scheduled reminder sequence: one email on the due date, another at +3 days, another at +7, and a final notice at +14. Each reminder should include the due date, the amount, and the payment link — so there's no friction between reading the reminder and paying.
Doing this manually for every invoice is impractical. That's why tools like Nudgeflow run the sequence automatically — and stop the moment payment clears. You set the terms, send the invoice, and the follow-up takes care of itself.
One change that improves collection rates immediately
If you currently use Net 30, try switching new clients to Net 15 or Net 7. Most clients don't push back — they simply pay by the new date because that's what the invoice says. On a ₹50,000 invoice, collecting 15 days earlier compounds to real cash flow over a year of work.