Practice freelance billing vocabulary: invoices, net-30, milestone payments, retainers, late payment clauses, and payment upon delivery language.
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A client's contract states payment terms of 'net-30'. What does this mean?
'Net-30' means payment is due within 30 calendar days of the invoice date. Other common terms are net-15, net-60, and due on receipt. Always clarify payment terms before starting work.
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You're working on a 3-month project. Which payment structure means you receive regular monthly payments for ongoing availability?
A retainer is a regular (often monthly) payment for ongoing availability or a set number of hours. Example: 'I work on a $3,000/month retainer for up to 20 hours of work per month.'
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You've completed the first phase of a project and want to send a bill for that phase. Which payment structure does this describe?
Milestone payment ties payments to project phases. Example: '50% upon design approval, 25% upon development completion, 25% upon final delivery.' This protects both parties.
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Your contract includes a 'late payment clause'. What is the typical purpose of this clause?
A late payment clause typically states that overdue invoices accrue interest (e.g., 1.5% per month) or a flat late fee. Example: 'Invoices unpaid after 30 days will accrue a 2% monthly late fee.'
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Which phrase means the client pays the full amount only after all deliverables are completed and accepted?
'Payment upon delivery' means full payment is due after the final deliverable is delivered and accepted. For freelancers, this carries risk — consider requesting a deposit upfront to mitigate non-payment risk.