Invoice Payment Terms Explained (Net 30, Due on Receipt & More)

Payment terms tell your client when payment is due. The right terms can be the difference between getting paid this week and chasing money next month.

Common payment terms and what they mean

• Due on receipt: pay as soon as the invoice arrives.
• Net 7 / Net 15 / Net 30: pay within 7, 15, or 30 days of the invoice date.
• 50% upfront: half before work starts, half on delivery — common for large projects.
• EOM (end of month): payment due at the end of the month the invoice was issued.

Which terms get you paid fastest?

Shorter terms generally mean faster payment. For freelancers and small businesses, “Due on receipt” or “Net 7” work well. Larger corporate clients often expect “Net 30”, so factor that into your cash flow.

Tips for setting payment terms

1. 1Agree terms in writing before the work starts.
2. 2State the due date clearly on every invoice — don't just write “Net 30”.
3. 3Consider a small late fee for overdue invoices.
4. 4Offer multiple payment methods to remove friction.

For more, read how to invoice a client and what to include on an invoice.