Payment deadlines are a core part of freelance business. They are the specific dates by which a client must pay your invoice for work completed.
What is Payment deadlines?
A payment deadline is the final date a client has to pay an invoice you've sent. It's a key term in your contract or agreement. This date marks when payment is officially due.
Why is this important?
Clear deadlines protect your cash flow and help you plan your finances. They set professional expectations and reduce the risk of late payments. Without them, clients may delay paying you indefinitely.
How does it work?
You set the deadline, often called 'net terms', when you create an invoice. Common terms are 'Net 15' or 'Net 30', meaning payment is due 15 or 30 days from the invoice date. The clock starts when you send the invoice.
Pros and cons
Pros include predictable income and professional boundaries. Cons can involve clients missing deadlines, requiring follow-up. Strict deadlines might deter some clients, while flexible terms can build goodwill but risk delays.
Conclusion
Payment deadlines are non-negotiable for a sustainable freelance business. They bring structure and security to your financial operations. Always define them clearly in your contracts and on every invoice you send.
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