How to Understand Payment Terms in International Remote Contracts

For people in Nigeria working for companies in the US, UK or Europe, a few extra questions matter. Who pays the transfer fees? Which currency do you invoice in? What can you actually do if the client pays late from another country?

This guide takes the payment section of a typical remote contract apart line by line. It decodes terms like "Net 30", "payment upon approval" and "fees borne by the recipient". A hypothetical timeline shows when money really lands. It ends with a checklist and some wording you can use to ask for better terms before you sign.

Quick answer

Find the payment amount, the currency, the frequency (weekly, monthly, per milestone), the trigger (invoice, timesheet or approval), the due date ("Net 30" means 30 days after the invoice), the payment method and who pays the fees. Then check the late-payment clause and the governing law. If any of these is missing or vague, ask for it in writing before you sign.

What the payment section of a remote contract covers

Most international contracts put payment in one clause called "Fees", "Compensation" or "Payment Terms". Some spread it across a schedule or a Statement of Work (SOW). An SOW is a separate document listing tasks, deadlines and prices for one project. Whatever the layout, these are the parts to find.

If your contract is an employment contract through an employer of record (EOR), the payment section looks more like a payslip promise: a gross salary, a payroll date and statutory deductions. An EOR is a company that legally employs you in Nigeria on behalf of a foreign business. Most Nigerians working for foreign companies are contractors instead, and contractor payment terms are where most of the confusion sits. Our guide to contractor versus EOR employee arrangements explains which you are likely to be.

Common payment terms, decoded

Contracts use shorthand that came from ordinary business invoicing. These are the phrases you'll meet most.

Net 7, Net 15, Net 30 and Net 60

"Net 30" means payment is due 30 days after the invoice date, or after the invoice is received or approved, depending on the wording. The number is the number of days. "Net 30 from receipt of a valid invoice" is not the same as "Net 30 from the invoice date": if the client takes a week to confirm the invoice is valid, your 30 days start a week later.

Large companies often default to Net 30 or Net 60 because their finance teams pay suppliers in batches. That suits a supplier with savings. It is hard on someone in Lagos with rent due and no buffer.

Due on receipt

"Due on receipt" means the client should pay as soon as they get your invoice. In practice it usually means "within a few days". It is reasonable to ask for on small, recurring contracts.

EOM and "end of month following"

"EOM" means end of month. "Net 30 EOM" usually means 30 days after the end of the month in which you invoiced. An invoice sent on 3 November would then be due around 31 December, not 3 December. Ask the client to confirm the exact date in writing if you see EOM.

Milestone payments

A milestone is a defined piece of work (a design, a first draft, a working feature) with a price attached. You are paid when the milestone is delivered and accepted. Milestones protect both sides on project work. The weak point is "accepted": if the contract doesn't say how long the client has to review, payment can stall indefinitely.

Retainers and upfront deposits

A retainer is a fixed amount paid regularly, often monthly in advance, to reserve your time. A deposit is a share of a project fee paid before work starts. For new clients you have never worked with, a deposit of a third to half of the fee is a common and sensible ask. It is a request, not a legal right.

Hourly with timesheets

Hourly contracts usually pay from timesheets you submit weekly or monthly. The trigger is the timesheet's approval. If your manager is on leave and doesn't approve it, you may not be paid on time. Check whether there is an automatic approval rule.

Payroll date (employees)

Employment contracts through an EOR usually state a fixed payroll date, such as "the last working day of each month". That is the simplest and most predictable arrangement you will see.

When the money actually arrives: a worked timeline

The gap between starting work and holding naira in your account is usually longer than people expect. Work it out before you sign, not after your first month.

Example (hypothetical): a monthly contractor on Net 30

Amaka signs a contract with a UK software company at $1,500 a month. She invoices monthly in arrears ("in arrears" means after the work is done) through a contractor platform. The terms say "Net 30 from receipt of an approved invoice".

1. She starts work on 3 November 2026.
2. She invoices on 30 November for November's work.
3. Her manager approves the invoice on 4 December.
4. Payment is due 30 days later, on 3 January 2027.
5. The platform releases the money to her account a few days later, and she withdraws to her Nigerian account.

Her first payment for work that started on 3 November lands in early January: roughly nine weeks of work with no income from this client. At the house rate of ₦1,362 to $1 (CBN NFEM weighted average, 23 October 2026), $1,500 is about ₦2,043,000 before fees and tax. She needs about two months of living costs saved, or a shorter first payment cycle, to get through that gap.

The same contract with "monthly in arrears, due within 7 days of invoice" would put her first payment in early December. That is a month's difference from one line of the contract.

What this means in practice

• Count the days from your first working day to your first payment, not the days on the invoice.
• If the gap is longer than you can afford, ask for shorter terms on the first invoice, or a partial payment after two weeks.
• After the first cycle, monthly pay arrives monthly. The long gap only hurts at the start, and again if the contract ends and you're waiting on a final invoice.

Approval: the step that quietly delays payment

Many contracts make payment depend on someone at the client approving something: an invoice, a timesheet or a deliverable. The due date only starts once that happens. If nobody approves, nothing is due.

Contractor platforms don't remove this step by default. Remote.com's help centre, for example, explains that scheduled contractor invoices are not automatically approved and paid unless the company has set up automatic payments (checked October 2026). Without automatic payments, someone at the company has to log in, approve the invoice and pay it.

To protect yourself:

• Ask who approves your invoices or timesheets, and who covers for them when they're away.
• Ask for a deemed-approval clause, for example: "If the Client does not dispute an invoice within 5 business days of receipt, it is deemed approved."
• For milestones, ask for a fixed review window, such as 7 days, after which the milestone counts as accepted.
• Submit invoices early in the client's working day. Lagos is 1 hour ahead of London in winter (GMT) and on the same time in summer (BST). US Eastern is 6 hours behind Lagos in winter and 5 in summer, so an invoice sent at 9am in Lagos arrives before anyone in New York is awake.

Currency, exchange rates and who pays the fees

This is the part of the payment clause that costs Nigerian contractors the most money, and the part they read least carefully.

Which currency is the contract in?

Check that the rate is stated in a named currency: "USD 1,500", not "1,500". Watch for clauses that let the client pay "the equivalent in local currency". That can mean naira converted at a rate the client or its bank chooses. If you want dollars, the contract should say you're paid in US dollars.

Some contracts are priced in pounds or euros. That's fine, but your income in naira will then move with two exchange rates, not one.

Who bears the transfer fees?

International payments can lose money at several points: the client's bank, any intermediary (correspondent) bank on a SWIFT wire, the platform, the receiving account and the conversion into naira. A contract usually says one of three things:

"Each party bears its own charges" is the fairest common wording. If the contract is silent, assume charges will come out of your side and ask for clarity. On a $1,500 invoice even modest fees add up over a year.

The payment method matters as much as the clause. Fees on Payoneer, Wise, Grey, Raenest, Deel and Upwork withdrawals differ and change often. Our guide on how to receive dollar payments in Nigeria compares them.

Exchange-rate risk

If you're paid in dollars and spend in naira, a weaker naira means more naira for the same invoice, and a stronger naira means fewer. Contracts rarely adjust for this, and you shouldn't expect them to. What you can control is when and how you convert, and that belongs to your own planning, not the contract.

Late payment: what the contract and the law say

Start with the contract. A good payment clause says what happens if the client pays late. That might be interest at a stated rate, a right for you to pause work after a set number of days overdue, or both. If there's nothing, ask for something simple, such as: "Invoices unpaid 14 days after the due date accrue interest at 2% a month, and the Contractor may suspend services until payment is received."

Then check the governing-law clause, which says which country's law applies to the contract. It decides which late-payment rules apply and where any dispute would be heard.

If the contract is under English law (UK clients)

The UK has statutory rules for late payment between businesses. As a contractor invoicing a UK company, you are normally treated as a business for this purpose. According to GOV.UK (checked October 2026):

• If no payment date is agreed, payment is late 30 days after the customer receives the invoice or the service is delivered, whichever is later. Agreed payment periods in business transactions should usually be no more than 60 days, and longer periods must be fair to both businesses.
• Unless the contract sets a different rate, you can claim statutory interest of 8% plus the Bank of England base rate.
• You can also claim a fixed sum for recovering the debt: £40 on debts up to £999.99, £70 on £1,000 to £9,999.99 and £100 on £10,000 or more, once per payment.

Whether those rules help you in practice depends on the contract's governing law and on how far you're prepared to chase. For a single unpaid invoice, a polite but firm email that mentions the statutory interest often works better than any formal step.

If the client is in the US, EU or elsewhere

Rules differ by country and, in the US, by state, and we have not checked them for this guide. With a US client, rely on what the contract says rather than on any assumed legal default, which is one more reason to get interest and suspension rights written in. For EU clients, ask a lawyer or the client's local business support body about the rules in that member state.

Practical steps when a payment is late

1. Check the due date against the contract wording (invoice date, receipt or approval).
2. Send a reminder the day after the due date, quoting the invoice number, amount and due date.
3. After 7 days, escalate to the finance or accounts payable contact, copying your manager.
4. If the contract allows it, give written notice that you'll pause work on a stated date.
5. If you work through a platform, open a payment issue through the platform's own dispute process.

Keep every invoice, approval email and message in one folder. Platforms and lawyers will ask for them.

Deductions, withholding and tax forms

A payment clause may let the client deduct money before paying you. Read these lines carefully.

• Withholding tax. US clients often ask foreign contractors to complete Form W-8BEN. The IRS describes it as the certificate of foreign status that a foreign individual gives to the withholding agent or payer when asked (checked October 2026). It tells the US payer you're not a US person. It doesn't settle your tax position in Nigeria, which our guide to tax for remote workers in Nigeria covers.
• Set-off. A set-off clause lets the client deduct money you owe them (for example for equipment) from what they owe you. Ask for it to require your written agreement first.
• Penalties. Some contracts deduct pay for missed deadlines or hours. Make sure any penalty is specific and capped, not "at the Client's discretion".
• Expenses. If you'll pay for software, travel or a new headset for the job, check whether the contract says how expenses are approved and reimbursed, and in which currency.

Payment terms that should worry you

Some payment terms are just unfavourable. Others are signs the "contract" is a scam. Know the difference.

Terms that are unfavourable but common, so negotiate them:

• Net 45, Net 60 or longer on a small monthly contract.
• Payment only "upon client satisfaction" with no review window.
• All fees borne by the contractor.
• No late-payment clause at all.

Terms that point to a scam, so walk away:

• You must pay for training, equipment, a "starter kit" or registration before your first payment.
• The client sends you a cheque or transfer that's "too much" and asks you to send back the difference.
• You're asked to receive money into your own account and forward it to someone else.
• Payment will come "after a probation period" for which you'll receive nothing, with no written terms.
• Pay in gift cards, crypto from an unknown wallet, or through a private Telegram or WhatsApp contact.

WorkRemote never charges anyone to apply for a job, and no genuine employer needs a fee from you to pay you. Our guide on how to spot remote job scams in Nigeria explains the common patterns, and what to do if a recruiter asks for money covers that situation specifically.

How to ask for better payment terms

Most clients will adjust payment terms if you ask clearly and early, before you sign. Finance teams expect it. Ask for one or two changes at a time, and give a reason.

What's realistic to ask for

• Shorter terms: Net 7 or Net 15 instead of Net 30, especially for monthly contractors.
• A smaller first invoice after two weeks, to shorten the first-payment gap.
• A deposit on project work with a new client.
• A deemed-approval clause and a fixed review window for milestones.
• "Each party bears its own bank charges" instead of "all fees borne by the contractor".
• A late-payment interest rate and a right to pause work.

Example (hypothetical): a short email asking for changes

Hi Daniel, thanks for sending the contractor agreement. I'm happy with the scope and rate. Two small requests on payment: could we change the terms from Net 30 to Net 15, and add that each party covers its own bank charges? I'm paid through an international transfer to Nigeria, and these two changes make a real difference to my cash flow. Happy to discuss. Best, Tolu

If the answer is no, you still know where you stand and can plan for it. For pay itself, as opposed to how and when it's paid, see our planned guide on negotiating a dollar salary for a remote job.

A payment terms checklist before you sign

Go through the contract with this list. Write the answer to each item next to it. If you can't find an answer, ask the client to add it.

1. What is the rate, and is it gross or net?
2. Which currency is named, and can the client switch to "local currency"?
3. How often are you paid, and is it in advance or in arrears?
4. What triggers payment: invoice, timesheet or approval?
5. What is the due date, and from which event does it count?
6. Is there a deemed-approval rule or a review window for deliverables?
7. Which payment method or platform will be used, and does it work for Nigeria-based recipients?
8. Who pays the sending, intermediary and receiving fees?
9. What happens if payment is late: interest, suspension, both, or nothing?
10. Which country's law governs the contract?
11. What can be deducted before you're paid, and does it need your agreement?
12. How are expenses approved and reimbursed?
13. On termination, how and when is your final invoice paid?
14. How many days pass between your first working day and your first payment?

Question 13 matters more than people think. If either side can end the contract on short notice, make sure the contract says work done up to the end date will be paid on the usual terms. Our planned guides on notice periods in remote contracts and what happens when a remote company ends your contract go further. For the rest of the contract (scope, IP, non-compete, working hours) see what to check in a remote work contract before signing.

Frequently asked questions

What does Net 30 mean in a remote contract?

Net 30 means the client has 30 days to pay after a stated event, usually the invoice date, receipt of the invoice or its approval. Check which event the contract uses, because "30 days from approval" can mean 35 or 40 days from when you invoiced.

Who pays the bank charges when a foreign client pays me?

It depends on the contract. "Each party bears its own charges" means the client pays sending fees and you pay receiving fees. "All fees borne by the contractor" means everything comes out of your money. If the contract is silent, ask, and assume charges will reduce what you receive until it's agreed.

Can I ask a foreign client to pay me upfront?

Yes, you can ask, and on project work with a new client a deposit is a reasonable request. Many companies hiring monthly contractors won't pay in advance, but some will agree to a shorter first payment cycle instead. Put whatever you agree in the contract or a written amendment.

What can I do if an international client doesn't pay on time?

Start with a written reminder quoting the invoice and due date, then escalate to their finance contact. If the contract has a late-payment interest or suspension clause, use it. For UK businesses, the statutory late-payment rules allow interest of 8% plus the Bank of England base rate and a fixed recovery sum, unless the contract says otherwise.

Should my contract be in dollars or naira?

If your goal is dollar income, the contract should name US dollars and not allow the client to switch to "local currency" at its own rate. A naira contract with a foreign company isn't wrong, but you take on the exchange-rate risk without the upside of dollar pay.

Do Nigerian contractors need to fill Form W-8BEN?

Often, yes, when a US client or platform asks for it. Form W-8BEN certifies to the US payer that you're a foreign individual. It doesn't replace your obligations in Nigeria, so keep your own records for Nigerian tax.

Is "payment upon client approval" a red flag?

Not on its own, as it's common in project work. It becomes a problem when there's no time limit on approval. Ask for a review window, such as 5 to 7 business days, after which the invoice or deliverable counts as approved.

What is the difference between being paid in advance and in arrears?

In advance means you're paid before the period of work, as with a monthly retainer. In arrears means you're paid after the work is done, which is normal for salaries and most contractor invoices. Arrears plus long net terms is what creates a long wait for your first payment.

Key takeaways

• Read the payment clause as a set: amount, currency, frequency, trigger, due date, method, fees and late-payment rights.
• Net terms count from a specific event. Check whether it's the invoice date, receipt or approval.
• Work out how long you'll wait for your first payment and save for that gap, or ask for a shorter first cycle.
• Insist on a named currency and clear wording on who pays transfer fees.
• Add a deemed-approval rule, a late-payment clause and a right to pause work if they're missing.
• UK late-payment rules give statutory interest and fixed recovery sums. For other countries, rely on the contract's own wording.
• Any term that asks you to pay money to get paid is a scam, not a negotiating point.

Next steps

Keep the checklist above next to the next contract you're sent, and ask for changes before you sign, not after the first late payment. When you're looking for roles, the remote jobs on WorkRemote show each company, its website and where applicants may live, so you can check eligibility before you get as far as a contract. Search for your role, then use "Get email updates" on the results page to get a free daily digest of new matching jobs. When the offer arrives, our guide to getting dollar payments into Nigeria will help you choose the payment method that loses the least to fees.

Sources

• Late commercial payments: charging interest and debt recovery, GOV.UK
• Late commercial payments: charging interest on commercial debt, GOV.UK
• Late commercial payments: claim debt recovery costs, GOV.UK
• About Form W-8BEN, Internal Revenue Service
• Are the scheduled contractor invoices automatically approved and paid for by default?, Remote help centre
• CBN exchange rates by currency, Central Bank of Nigeria