Payment terms wording for invoices and contracts: 12 copyable clauses

By SoloWOS teamPublished October 18, 2026

IN SHORT

Clear invoice payment terms state the due date ("due within 15 days of the invoice date"), accepted payment methods, the late fee and when it starts, and who pays transfer fees. Put the full terms in the contract the client signs before work begins, then repeat the due date and late fee on every invoice so accounts payable sees them.

Prices and limits as of October 26, 2026.

Key takeaways

The contract holds the full terms; the invoice repeats only the due date, payment methods and late fee.
Ownership of the work should transfer on full payment, in a signed writing: US copyright transfers require one.
A late fee or kill fee is safest when it's a reasonable estimate of your loss and was agreed before work began.
Covered freelancers in New York, California and Illinois must have payment terms in a written contract.

These are the clauses that decide when you get paid. Copy the ones you need into your contract (the freelance contract template has a place for each), fill in the brackets and repeat the short versions on your invoices. For the reasoning behind the numbers, see net 30 vs due on receipt and how much deposit to ask for.

Where each clause belongs

Contract = signed before work starts. Invoice = repeated on every invoice, usually in the notes.
Clause	Contract	Invoice
1. Due date	Yes	Yes, as a date
2. Deposit	Yes	On the deposit invoice
3. Late fee	Yes	Yes, one line
4. Kill fee	Yes	No
5. Currency	Yes	Yes, in the total
6. Transfer fees	Yes	Yes, one line
7. Accepted methods	Yes	Yes, with details
8. Ownership on payment	Yes	Optional reminder on the final invoice
9. Expenses	Yes	As line items
10. Dispute window	Yes	Optional
11. Collection costs	Yes	No
12. Retainer	Yes	On each retainer invoice

The 12 clauses

1 to 4: due date, deposit, late fee, kill fee

1. DUE DATE. Invoices are due [15] days after the invoice date. The due date is shown on each invoice.

2. DEPOSIT. A deposit of [50]% ($[amount]) is due before work starts and is credited toward the project fee. Work is scheduled once the deposit is received.

3. LATE FEE. Amounts unpaid after the due date accrue a late charge of [1.5]% per month, calculated daily from the due date until paid, or the highest rate allowed by law if lower.

4. KILL FEE. If Client cancels the project after work has started, Client will pay for all work completed through the cancellation date plus a cancellation fee of [25]% of the remaining project fee, which reflects time reserved that Contractor cannot rebook on short notice. The deposit is applied to these amounts.

5 to 8: currency, transfer fees, payment methods, ownership

5. CURRENCY. All fees are in [US dollars (USD)]. Client pays the invoice total in that currency regardless of exchange rates.

6. TRANSFER FEES. Client pays any bank, wire or intermediary fees charged on Client's side, so that Contractor receives the full invoice amount.

7. PAYMENT METHODS. Client may pay by card through the link on each invoice, by ACH, or by bank transfer to the account shown on the invoice. [Payments over $(1,000) should be made by ACH or bank transfer.]

8. OWNERSHIP ON PAYMENT. On receipt of full payment of all invoices under this agreement, Contractor assigns to Client all rights in the final deliverables. Until then, Contractor grants Client a limited license to review the work.

9 to 12: expenses, disputes, collection costs, retainer

9. EXPENSES. Client reimburses pre-approved expenses at cost (stock assets, fonts, travel, third-party fees). Expenses over $[100] need Client's written approval first and are billed with receipts on the next invoice.

10. DISPUTES. Client will raise any question about an invoice in writing within [7] days of receiving it. The undisputed portion remains due on the due date.

11. COLLECTION COSTS. If an invoice is more than [30] days overdue and is referred for collection, Client will pay reasonable collection costs, including attorney's fees and court costs, to the extent allowed by law.

12. RETAINER. Client pays a monthly retainer of $[amount], invoiced on the [1st] of each month and due on receipt, for up to [20] hours of work that month. Up to [5] unused hours roll over to the next month only; extra hours are billed at $[rate] per hour with the next invoice.

How to fill in the brackets

Due date (1): match the client's payment run. Net 15 suits most small businesses; accept net 30 from companies that pay monthly, and say "calendar days" if there's any doubt.
Deposit (2): 50% for projects under about $10,000, less with milestones on bigger ones. Write the dollar amount next to the percentage so no one recalculates it.
Late fee (3): a monthly rate between 1% and 1.5% is common. Keep the "highest rate allowed by law" wording, which protects you if your state's limit is lower.
Kill fee (4): base it on time you can't rebook. On a 6-week project cancelled in week 2, 25% of the remaining fee is easier to defend than 100%.
Currency and transfer fees (5, 6): for clients abroad, name the currency and ask them to cover their bank's charges, or the wire arrives short.
Payment methods (7): list only methods you actually accept, and steer large invoices to ACH or bank transfer, where fees are lower.
Ownership (8): keep the transfer tied to full payment. If a client needs rights earlier, such as for a launch, price that in.
Expenses (9): set an approval threshold low enough that you never front a cost the client might refuse.
Disputes (10): seven days is enough for a client to spot an error and short enough that a dispute raised in week 5 looks like an excuse.
Retainer (12): cap rollover at one month and state the overage rate, so the monthly invoice never needs a negotiation.

Notes on enforceability

Late fees and kill fees: courts generally enforce an agreed amount owed on breach or cancellation when it's a reasonable estimate of the loss, and refuse one that works as a penalty. Tie the number to something real (time reserved, work done) and check late fee limits by state.
Ownership: a transfer of copyright ownership is valid only in a writing signed by the owner (17 U.S.C. § 204), so clause 8 belongs in the signed contract, not just on an invoice.
Freelance laws: New York (jobs of $800 or more), California ($250 or more) and Illinois ($500 or more) require a written contract with the rate, the method of payment and the payment date or how it's set. Clauses 1, 2 and 7 cover that.
Disputes: clause 10 helps you get paid the undisputed part, but California's SB 988 bars a client from making timely payment depend on you accepting less or doing more than the contract says.
Collection costs: whether you can recover attorney's fees usually depends on a clause like 11, and some laws (such as New York's Freelance Isn't Free Act) award them to covered freelancers.

When the client sends their own contract

Larger clients often insist on their paper. Read their payment section against this list: net 60 or longer, payment only after their own client pays them ("pay when paid"), no late fee, ownership transferring on delivery rather than payment, and a right to withhold payment for any dispute. Ask to change the ones that matter most to you, usually the payment term and the ownership trigger, and accept the rest.

Short versions for the invoice

Invoice notes block

Due [June 15, 2026] (net 15). Pay by card at the link above, or by ACH or bank transfer to the account below.
Please cover any transfer fees on your side so the full amount arrives.
Late payments accrue [1.5]% per month, as agreed in our contract dated [date].
Questions about this invoice? Reply within 7 days.

In SoloWOS

In SoloWOS Invoicing, paste the invoice notes block into the Notes field of each invoice, and add your bank details once under Payment instructions in Settings > Client payments so they appear on every invoice and invoice email. Put the full clauses in the terms block of a proposal the client accepts online, or in a contract you send for e-signature. Work out a specific late charge with the invoice late fee calculator.

Questions

What are standard payment terms for freelancers?

Common terms are net 15 for small and mid-size businesses, net 30 for larger companies, a 25% to 50% deposit before work starts and a late fee of 1% to 1.5% a month. Put them in the contract and repeat the due date and late fee on each invoice.

What should I write in the payment terms on an invoice?

The due date as an actual date, the accepted payment methods with your details, who pays transfer fees, and the late fee with a reference to the contract. Four short lines are enough; the full terms live in the contract.

Do invoice terms count if the client never signed anything?

Terms that first appear on an invoice are weak, because the client didn't agree to them before the work. They're stronger if the client accepted a proposal or contract that included them. Get the terms accepted in writing first.

Should I include a kill fee in my contract?

Yes for projects where you block out time or turn down other work. A kill fee of 25% to 50% of the remaining fee is common, plus payment for work done. Keep it tied to your real loss so it isn't treated as a penalty.

Sources

Facts checked against these sources on October 18, 2026. Rules and amounts change, so confirm them at the source before you file or sign.

Last reviewed: October 18, 2026

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