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Payment Terms Cheat Sheet

Net 30, kill fees and late fee rules by country. Then build a clause that gets you paid.

United States

USD
Typical terms
Net 30 is standard. Large agencies often push net 45 to net 60.
The law
No federal late payment law for freelancers. New York State, New York City, Los Angeles and Illinois freelance laws require written contracts and on time payment, defaulting to 30 days after completion if no date is set.
Late interest
Set by your contract. 1 to 1.5 percent per month is common, within state usury limits.
Recovery costs
Only what the contract says, so write the late fee in.
Tax basics
Brands usually ask for a W9 and issue a 1099 above the reporting threshold. Non US creators submit a W8BEN.
Pro tip: Write the late fee into the agreement. Without it, you have little leverage.

Payment terms, decoded

Net 30

Payment due 30 days after the invoice date. Net 15 and net 60 work the same way.

Due on receipt

Payment is expected as soon as the invoice arrives. Best for small jobs.

Deposit

Part of the fee paid before work starts, usually 30 to 50 percent.

Kill fee

What you are paid if the brand cancels. Commonly 25 to 50 percent mid work, 100 percent once delivered.

Late fee

A charge on overdue invoices, usually a monthly percentage or a fixed amount.

Milestone payments

The fee split across stages such as concept, delivery and posting.

EOM

End of month. Net 30 EOM means 30 days after the month the invoice was sent.

Withholding

Tax the brand deducts before paying you, such as TDS in India.

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