Your invoice payment terms tell clients when they need to pay. Choose them wisely — the wrong terms can leave you waiting 60+ days for money you've already earned. The right terms keep your cash flow healthy and set clear expectations from day one.
Common Payment Terms in New Zealand
Due on Receipt
Payment expected immediately when the invoice is received. Used for:
- One-off work where you don't have an ongoing relationship
- Clients with a history of paying late
- Small amounts where chasing is disproportionate
Rarely used in B2B — most businesses need at least a few days to process payments.
7 Days
Payment due 7 days after the invoice date. A good choice for:
- Freelancers doing short-term project work
- Clients who pay promptly
- Work where you need cash flow quickly
Seven-day terms set a clear, short expectation. Many clients will still pay late, but at least you can chase them sooner.
14 Days (Most Common for NZ Freelancers)
The most commonly used payment term for NZ freelancers and small service businesses. Gives clients enough time to process the invoice through their own systems while still keeping your cash flow moving.
20th of the Following Month
Standard in many NZ trades and construction industries. If you invoice on 5 July, payment is due 20 August. This is a long time to wait, but it's what many larger clients (especially in construction) expect.
If you work mostly with homeowners or small businesses, you don't need to offer this.
30 Days (Net 30)
Common in corporate and government contracts. Payment is due 30 days after the invoice date. If you're dealing with larger organisations, they may insist on 30-day terms in their supplier agreements.
What to Actually Use as a NZ Freelancer
For most NZ freelancers, 14-day payment terms is the right default. Here's why:
- Short enough to maintain healthy cash flow
- Long enough for clients to process without complaints
- Standard enough that clients don't push back
If you're working with larger corporate clients who insist on longer terms, consider adjusting your rate to compensate for the cash flow delay. A client who pays in 60 days is effectively offering you an interest-free loan of your invoice amount for 60 days.
Should You Charge Late Payment Fees?
You can charge interest on overdue invoices in New Zealand, but only if it was stated in your original terms. Add this to your invoice footer:
"Interest at 2% per month (compounding) will be charged on amounts outstanding after the due date."
In practice, most freelancers don't enforce this — chasing interest creates conflict and the amounts are usually small. But having it in your terms gives you leverage and signals that you take payment seriously.
Upfront Deposits for Larger Projects
For projects over $1,000 (or any project where non-payment would hurt), consider requiring a deposit before starting work:
- 50% upfront, 50% on completion — standard for most creative and technical freelancers
- 30% upfront, 30% mid-project, 40% on completion — for longer engagements
A deposit protects you if the client disappears or disputes the work, and it filters out low-quality clients who aren't serious about the project.
Milestone Billing for Long Projects
Instead of invoicing everything at the end, break large projects into milestones and invoice at each one. This reduces your exposure to non-payment and keeps cash flowing during the project.
Example for a $10,000 website project:
- Invoice 1 — $3,000 on project kick-off
- Invoice 2 — $3,000 on delivery of designs
- Invoice 3 — $4,000 on final delivery
How to Include Payment Terms on Your Invoice
Your payment terms should appear clearly on every invoice — both the due date (calculated from the invoice date) and the terms themselves. Good invoicing software calculates the due date automatically based on your default terms.
In MyBillDash, you set your default payment terms once in your profile, and every new invoice automatically shows the correct due date. You can override the due date on any individual invoice if needed.
Getting Paid Faster — Practical Tips
- Send the invoice immediately — don't batch invoices or wait until the end of the month
- Use a clear subject line — "Invoice #0042 from [Your Name] — $1,150 due 23 July"
- Make your bank details prominent — clients can't pay if they can't find the account number
- Follow up on the due date — a quick "just checking in on invoice #0042 due today" takes 30 seconds
- Make payment easy — some freelancers include a payment link; at minimum, bank details must be clear
Consistent invoicing habits — sending promptly, following up on time — are the biggest driver of on-time payment. The tools matter, but the habit matters more.