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Freelance contract payment terms: rules, agreements & smart tips

Sanne de Vries March 12, 2024 Updated on: October 21, 2025

As a freelancer, getting paid on time is not just a goal, it’s critical for your business. Setting clear freelance contract payment terms ensures your clients know what to expect and helps you avoid cash flow issues. In this article, you’ll find everything you need to know about legal payment timelines, what’s common in the freelance world, and how to choose the right payment terms for your contracts.

We’ll also share what to do when a client pays late, and how accounts receivable software like Payt helps you get paid faster and maintain control of your invoices.

Table of contents:

What are payment terms and what’s normal for freelancers?

Freelance payment terms define how long a client has to pay your invoice. Typically, these range between 14 and 30 days. While you’re free to set your own terms, if you don’t define them in your contract, the legal default will apply.

Why payment terms matter

Freelancers often operate with less financial buffer. Long payment terms can damage your liquidity and disrupt your ability to cover your own costs. Choosing realistic freelance invoice payment terms helps you stay in control and financially healthy.

Legal payment terms for freelancers

In most cases, businesses must pay each other within 30 days if no other term is agreed upon. The maximum allowed is 60 days, unless both parties can prove that a longer term isn’t disadvantageous. For public sector clients, payment must be made within 30 days. Consumers don’t have a fixed legal term, meaning you can set a reasonable deadline yourself.

Want to learn more about legal payment requirements? Visit our blog post on ‘legal payment terms’.

Payment terms by client type

Business clients (B2B)

The standard is 30 days, but you can agree on longer terms (up to 60 days) if it’s in writing. Many freelancers choose 14 or 30-day terms to keep their cash flow strong.

Consumers (B2C)

No fixed term applies, so you can decide what’s fair. Most freelancers opt for 14 or 30-day freelancer payment terms.

Government and large enterprises

Public institutions are legally bound to pay within 30 days. Large enterprises must pay freelancers and small businesses within the same timeframe.

Setting payment terms in your freelance contract

To avoid disputes, clearly define your freelancer payment terms and conditions in both your contract and general terms. Mention the due date on your invoice, explain when late fees will apply, and include the interest rate. A 14-day payment term is often seen as fair and realistic.

What if a client pays late?

Even with clear terms, delays happen. Here’s what you’re entitled to do:

Send reminders and warnings: Start with a friendly reminder. If that doesn’t work, send a formal notice. For consumers, the first notice must be free before you can apply collection fees.
Charge late fees: After 30 days, you can charge a standard € 40 late fee, plus legal and collection costs. This is legally allowed.
Apply statutory interest: You’re entitled to interest for the days the payment is overdue.
Use a collection agency: If all else fails, escalate the case professionally.

More insights on handling overdue invoices? Read how to reduce your outstanding invoices.

Tips to keep your cash flow healthy

Clear invoices and terms

Make sure your invoice includes payment terms, banking details, and any penalties. Always attach your general terms and conditions.

Use shorter payment terms

A 14-day term is both common and practical. It shows whether your client is serious about paying promptly.

Send and track invoices digitally

Digital delivery ensures faster receipt. The delivery date starts the countdown for your freelance contract payment terms. Use a system to track payments and respond quickly when due dates are missed.

Stay proactive

Monitor your receivables regularly and take action as soon as a deadline is passed.

How Payt helps you get paid faster

Payt automates your entire accounts receivable process. From automated reminders to tracking payments and escalating to collections, Payt saves you time and stress. With Payt, you can:

Communicate via a secure invoice portal
Offer flexible payment methods
Set up smart installment plans
Check creditworthiness before accepting new projects

These tools reduce your days sales outstanding (DSO) and ensure you’re always in control.

Want to see how it works? Download our brochure or book a free demo.

By Sanne de Vries

Sanne is a business consultant at Payt. She helps companies optimise their financial flows with attention to detail and a deep understanding of business processes.