Payment terms tell your client when and how to pay. Writing them clearly on every invoice, and agreeing them before the work starts, avoids most late-payment headaches.
Common invoice payment terms
| Term | What it means |
|---|---|
| Due on receipt | Pay as soon as the invoice arrives. Common for small jobs and new clients. |
| Net 7 / Net 14 | Full payment due 7 or 14 days after the invoice date. |
| Net 30 | Full payment due 30 days after the invoice date. The most common term between businesses. |
| Net 60 / Net 90 | 60 or 90 days. Often asked for by large companies; think twice before agreeing if cash flow is tight. |
| EOM (end of month) | Due at the end of the month the invoice is dated in. "Net 30 EOM" means 30 days after the end of that month. |
| 2/10 Net 30 | The client may take a 2% discount if they pay within 10 days; otherwise the full amount is due in 30 days. |
| 50% upfront | Half is paid before work starts (a deposit invoice), the rest on delivery. |
| CIA / CWO | Cash in advance / cash with order: payment before you deliver anything. |
| COD | Cash on delivery: payment when the goods or work are handed over. |
| Milestone payments | Fixed amounts at agreed stages of a longer project. |
How to work out the due date
Count from the invoice date, not the date the client opens it. An invoice dated November 14 with Net 30 is due December 14. In the invoice generator, new invoices get a due date 30 days after the invoice date, which you can change.
Choosing your terms
- New or one-off clients: due on receipt, or a deposit upfront.
- Regular business clients: Net 14 or Net 30 is normal and easy to accept.
- Big projects: a deposit plus milestones keeps your cash flowing and limits your risk.
- Want faster payment? Offer an early-payment discount like 2/10 Net 30, or just ask for Net 14.
Writing terms on the invoice
Be specific, for example: "Payment due within 30 days of the invoice date (by December 14, 2026) by bank transfer. Please include the invoice number as the payment reference." Put this in the Terms box, and your bank or PayPal details in Payment details.
Late fees
If you charge interest or a fee on late payments, agree it in writing beforehand and state it on the invoice. Many places limit how much you can charge, and some set a statutory rate for business-to-business invoices (the UK and EU do, for example), so check the rules where you and your client are. For gentle follow-ups, use these payment reminder templates.
Questions
What does Net 30 mean on an invoice?
Net 30 means the full amount is due 30 days after the invoice date. For an invoice dated November 14, payment is due by December 14.
Is Net 30 calendar days or business days?
Calendar days, unless your agreement says otherwise.
What does 2/10 Net 30 mean?
The client can deduct 2% if they pay within 10 days of the invoice date. Otherwise the full amount is due within 30 days.
General information, not legal, tax or accounting advice. Rules differ by country and state; check yours or ask a professional.
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