The first time a client said "we pay on net-60 terms," I just... accepted it. Two months of waiting for money I'd already earned. Never again.
After 190+ articles helping UK freelancers get paid, I've learned that payment terms are the single biggest lever most developers never pull. Here's what actually works.
The Problem Nobody Talks About
Most freelance developers spend hours optimising their code but zero time optimising their cash flow. You wouldn't ship a production app with a 60-day response time, so why accept 60-day payment terms?
The reality for UK freelancers:
- Average late payment to small businesses: 23 days past terms (BACS/Xero data)
- Net-30 actually means Net-53 in practice
- 1 in 6 freelancers have considered quitting due to late payments
What I Use Instead of Net-30
1. Milestone Payments (My Default)
Project: £6,000 website rebuild
├── 33% upfront (£2,000) — before any work starts
├── 33% at design approval (£2,000)
└── 34% at launch (£2,040)
Why this works: You're never more than one milestone ahead of payment. If they stop paying, you stop working. Simple.
2. The "Net-7 with Discount" Play
For ongoing/retainer clients:
"My standard terms are Net-14, but I offer a 2.5% discount for payment within 7 days."
Most corporate finance teams will jump at this. They look good internally for "saving money," and you get paid faster. Win-win.
3. Deposit + Net-14 for New Clients
Never start work for a new client without a deposit. Full stop.
I use 50% deposit for projects under £5k, 33% for larger ones. The deposit proves two things:
- They actually have the budget (you'd be surprised)
- They're serious about the project
The Exact Email I Send When Terms Are Proposed
When a client sends over a contract with Net-30 or Net-60:
Hi [name],
Thanks for sending this over. I've reviewed the contract and everything looks great — just one adjustment I'd like to discuss.
I work on Net-14 terms as standard, with a [deposit amount] deposit before work begins. I've found this works well for both sides — it keeps the project moving quickly and means I can prioritise your work without cash flow concerns.
For context, this is standard across the UK freelance community — the Late Payment of Commercial Debts Act 1998 actually sets the statutory default at 30 days, but most independent developers work on shorter cycles.
Happy to jump on a quick call if you'd like to discuss.
Success rate: About 80%. The other 20% meet me at Net-21, which I'll accept for the right client.
When to Walk Away
Red flags that predict payment problems:
- They push back hard on deposits ("we've never done that before")
- They want to extend terms beyond 30 days
- They ask you to start before paperwork is signed
- They don't have a purchase order process
- "The cheque is in the post" (yes, people still say this in 2026)
The Legal Backup You Probably Don't Know About
Under the Late Payment of Commercial Debts (Interest) Act 1998, if a client pays late, you can charge:
- 8% + Bank of England base rate in annual interest
- Fixed compensation: £40 (debts up to £999.99), £70 (£1k-£9,999.99), or £100 (£10k+)
I've included this clause in every contract since 2021. I've only had to invoke it twice, but both times the client paid within 48 hours of receiving the notice.
Tools That Help
I built a suite of free tools for UK freelancers — including a payment terms generator, late payment interest calculator, and invoice template with proper payment clauses baked in.
The day rate calculator also factors in expected payment delays, so you can set your rate knowing the real timeline you'll get paid on.
TL;DR
- Never accept Net-30+ without negotiating. It's not rude, it's business.
- Always take a deposit from new clients. No exceptions.
- Milestone payments beat lump-sum invoicing every time.
- Know the law. The Late Payment Act is your friend.
- Have the awkward conversation early. It's 100x worse having it when you're already owed money.
I write about the business side of freelance development at landolio.com — free tools, templates, and guides for UK self-employed developers. No fluff, just things that actually help you get paid.
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