Invoice payment terms explained
Updated · 2 min read
Payment terms tell your client when they need to pay and sometimes how. Clear terms, agreed before you start work and printed on every invoice, are the simplest way to get paid on time.
Common payment terms
| Term | Meaning |
|---|---|
| Due on receipt | Pay as soon as the invoice arrives |
| Net 7 / Net 10 / Net 15 | Pay within 7, 10 or 15 days of the invoice date |
| Net 30 | Pay within 30 days of the invoice date |
| Net 60 / Net 90 | Pay within 60 or 90 days, common with large companies |
| EOM | End of month; “Net 30 EOM” is 30 days after month end |
| 2/10 Net 30 | 2% discount if paid within 10 days, otherwise the full amount is due in 30 |
| CIA / CWO | Cash in advance / cash with order: pay before work starts |
| COD | Cash on delivery |
| 50% upfront | Half before starting, the rest on completion |
“Net” days are calendar days from the invoice date, including weekends. Use our due date calculator to find exact dates.
How to choose your terms
- Shorter is better for cash flow. Freelancers and small businesses often use Net 7 or Net 14.
- Match the client. Large companies may insist on Net 30 or longer because of their payment runs. Ask before you quote, and price accordingly.
- Use deposits for big jobs. 30–50% upfront protects you on long projects.
- Offer an early-payment discount (such as 2/10 Net 30) if faster cash is worth a small discount to you.
How to write payment terms on an invoice
Be specific. Instead of just “Net 30”, add the date and the method:
Payment due within 30 days (by 31 October 2026) by bank transfer to the account below. Please quote the invoice number as the reference.
If you charge interest on late payments, say so. See how to charge late fees.
Adding payment terms in our invoice generator
In our invoice generator, payment terms are optional. Type something like “Net 30” and the due date fills in automatically. Leave the field empty and it won’t appear on the invoice.