Guides · 2026-10-12
Invoice Payment Terms Explained: Net 30, Due on Receipt & More (With Wording Examples)
Payment terms tell your client two things: when they must pay, and what happens if they do not. Vague terms lead to slow payments, while clear terms, written as an actual date, get you paid faster. Below you will find what each common term means, when to use it, and wording you can paste straight onto your invoice.
Quick reference table
| Term | What it means | Example (invoice dated 1 Nov) |
|---|---|---|
| Due on receipt | Pay as soon as the invoice arrives | Due 1 Nov |
| Net 7 | Pay within 7 days of the invoice date | Due 8 Nov |
| Net 14 | Pay within 14 days | Due 15 Nov |
| Net 30 | Pay within 30 days | Due 1 Dec |
| Net 60 / Net 90 | Pay within 60 or 90 days | Due 31 Dec / 30 Jan |
| EOM | Pay by the end of the month the invoice was issued | Due 30 Nov |
| Net 30 EOM | Pay within 30 days after the end of the month | Due 30 Dec |
| 2/10 Net 30 | 2% discount if paid within 10 days, otherwise full amount in 30 | Discount until 11 Nov, full amount due 1 Dec |
| CIA / CWO | Cash in advance / cash with order | Payment before work starts |
Some businesses count days from the invoice date, others from the date of delivery or receipt. To avoid arguments, always write the due date itself on the invoice, not just the term.
Due on receipt
The client should pay immediately. In practice, many clients treat it as within a few days, and some larger companies will still process it on their standard payment cycle. It works best for small one-off jobs, individual (non-business) customers, and clients who pay by card or online link.
Payment terms: Due on receipt. Please pay by 1 November 2026 using the link below.
Net 7, Net 14, and Net 30
Net simply means the full (net) amount is due within the stated number of days. Net 30 is the most familiar term in business-to-business work in the US, UK, Canada, and Australia, but nothing stops you from asking for shorter terms. Many freelancers use Net 7 or Net 14 to protect cash flow.
Payment terms: Net 14. Payment is due within 14 days of the invoice date, by 15 November 2026.
Payment terms: Net 30. Please pay the full amount of 2,400.00 by 1 December 2026.
Choose shorter terms for small clients and individual buyers. Accept Net 30 when it is the client's standard and the relationship is worth it.
Net 60 and Net 90
Large companies and public bodies sometimes require 60 or 90 days. These long terms can be hard on a small business, so factor them into your pricing or negotiate. It is often worth asking whether a shorter term is possible for small suppliers, as some organizations have policies for paying smaller businesses faster. Rules on maximum payment periods exist in some places, so check local rules if a client insists on very long terms.
Payment terms: Net 60, as per purchase order 7781. Payment due by 31 December 2026.
End of month (EOM) terms
EOM terms suit clients who run one payment batch per month. Net 30 EOM means 30 days after the end of the month in which you issued the invoice, so an invoice dated 1 November would be due 30 December. Because these are easy to miscalculate, always spell out the date.
Payment terms: Net 30 EOM. Payment is due by 30 December 2026.
Early payment discounts (2/10 Net 30)
2/10 Net 30 means the client can take 2% off if they pay within 10 days; otherwise the full amount is due within 30 days. Discounts can speed up payment, but they cost you money on every invoice where they are used, so test them with clients who are usually slow rather than everyone.
Payment terms: 2/10 Net 30. Pay 2,352.00 by 11 November 2026 (2% early payment discount) or 2,400.00 by 1 December 2026.
Upfront and partial payment terms
For larger projects, you do not have to wait until the end to be paid. Common structures include:
- Deposit: 50% upfront, 50% on completion
- Milestones: payments tied to deliverables, for example 30% at kickoff, 40% at first draft, 30% at final delivery
- Retainer: a fixed monthly fee billed in advance
- Cash in advance: full payment before work starts, useful for new clients or rush jobs
Payment terms: 50% deposit due on receipt to secure your booking. The remaining 50% (1,200.00) is due within 7 days of final delivery.
Payment terms: Monthly retainer, billed in advance. Due on the 1st of each month. Work for the month begins once payment is received.
Late payment fees and interest
Your terms can also state what happens when payment is late. Common approaches include a flat late fee or monthly interest on the overdue balance. Whether you can charge these, and how much, depends on where you and your client are located and whether the fee was agreed in advance. For example, in the UK businesses may be able to claim statutory interest and fixed compensation on overdue business-to-business invoices, while in the US late fee rules vary by state. Check local rules before applying any charge.
Late payments: Invoices not paid by the due date may incur a late fee of [amount or %] per month on the outstanding balance, as agreed in our contract dated [date].
Put this clause in your contract or proposal first, then repeat it on every invoice. A fee that appears for the first time on an overdue invoice is much harder to enforce.
How to choose the right terms
- Match the job size. Small jobs: due on receipt or Net 7. Large projects: deposit plus milestones.
- Match the client. Individuals and small businesses can usually pay quickly. Large companies often have fixed cycles you will need to work within.
- Protect your cash flow. Ask yourself how long you can comfortably wait. If the answer is two weeks, do not offer Net 60.
- Agree terms before you start. Put them in your quote or contract so the invoice holds no surprises.
- Be consistent. Using the same terms for similar clients makes them easier to enforce.
Copy-paste payment terms block
Here is a complete terms section you can adapt and paste at the bottom of any invoice:
Payment terms: Net 14. Payment of [amount] is due by [date].
How to pay: Bank transfer to [account name], [account details], or pay online at [link]. Please use invoice number [number] as your payment reference.
Late payments: As agreed in our contract, overdue invoices may incur [late fee terms].
Questions: Contact [email] and quote invoice number [number].
Put your terms to work
Our free invoice maker lets you add payment terms and a due date to every invoice, and the invoice templates place them right next to the total where clients will see them. If an invoice does slip past its due date, use our late payment reminder templates to follow up.