Learn vocabulary for freelance invoicing: payment terms, late payment follow-up, and professional billing language.
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What are 'net payment terms' in invoice vocabulary?
Net payment terms: Net 7 (7 days), Net 14 (14 days), Net 30 (30 days from invoice date). Net 30 is common for business clients but means waiting a month. For small freelancers, shorter terms (Net 7 or Net 14) or milestone payments reduce cash flow risk. State your payment terms explicitly in every proposal and contract.
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What is a 'late payment fee' and how do you communicate it?
Late payment fee: 'Invoices unpaid after Net 30 accrue a late fee of 1.5% per month on the outstanding balance.' This should be in your contract AND on every invoice. More important: it gives you grounds to follow up professionally and is a deterrent. Many freelancers waive it for good clients as a goodwill gesture — having it matters as leverage.
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What is the professional language for a first payment reminder?
First reminder (3-5 days after due date): warm and assumption-positive. 'Just following up on invoice #123 ($2,500) due March 15 — it may have slipped through the cracks. Please let me know if you have any questions or need me to resend.' Assume an oversight, not malice. Escalate firmness with each subsequent reminder.
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What is a 'deposit' or 'retainer' in freelance payment vocabulary?
Deposit (project-based): 25-50% upfront before work starts. Retainer (ongoing relationship): a fixed monthly fee for a set amount of ongoing work/availability. Both reduce non-payment risk, improve cash flow, and filter out non-serious clients (clients who refuse any upfront payment are higher risk). Deposits are standard practice and should not feel awkward to request.
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What is 'net-30 with early payment discount' in invoice vocabulary?
2/10 Net 30 (read: 2-10-net-30): client gets 2% off the invoice if they pay within 10 days; otherwise full amount due in 30 days. For a $5,000 invoice: pay in 10 days = $4,900; otherwise pay $5,000 by day 30. This incentivises prompt payment without making it look like a penalty for paying on time.