Invoice payment terms answer a basic question: exactly when does the client need to pay? “Due on receipt,” “Net 7,” “Net 15,” and “Net 30” are shorthand for different payment windows, but shorthand alone can still create ambiguity.
The safest invoice shows both the term and a calendar due date. If an invoice is dated September 1 and uses Net 15, write “Net 15 — due September 16, 2026.” That removes arguments about whether the count begins on the invoice date, delivery date, or approval date.
This guide explains what the terms mean. If you already understand the definitions and need help drafting a complete clause, read How to Write Payment Terms That Prevent Delays.
Invoice Payment Terms at a Glance
| Term | Meaning | Example for an invoice dated September 1 | What to clarify |
|---|---|---|---|
| Due on receipt | Payment is requested when the client receives the invoice | Due September 1 if delivered that day | Whether the client's approval process can support immediate payment |
| Net 7 | Full payment is due seven calendar days after the agreed start date | Due September 8 | State whether counting begins from invoice date or receipt |
| Net 15 | Full payment is due 15 calendar days after the agreed start date | Due September 16 | Add the exact date to avoid counting disputes |
| Net 30 | Full payment is due 30 calendar days after the agreed start date | Due October 1 | Confirm the client's AP cycle before agreeing |
| End of month (EOM) | Payment is due at the end of a specified month | Due September 30 | Define which month's end applies |
| 2/10 Net 30 | A 2% discount applies if paid within 10 days; otherwise the full amount is due in 30 days | Discount through September 11; full amount due October 1 | State the eligible amount and how the discount is calculated |
“Net” refers to the number of days until the full invoice amount is due. In practice, businesses sometimes count from receipt rather than the invoice date, and contracts can define the period differently. Put the convention in the agreement and repeat the actual date on the invoice.
Due on Receipt
Due on receipt asks for payment immediately after delivery. It can fit deposits, short engagements, or transactions where the client has already approved payment. It does not guarantee same-day settlement: a client's bank, card provider, or AP approval process can still add time.
Use it only when the client agreed to it before the invoice arrived. “Due on receipt — September 1, 2026” is clearer than the phrase by itself.
Net 7
Net 7 gives the client seven days to pay. It can work for smaller invoices or clients with a quick approval process. Before using it, ask whether the person receiving the invoice can approve and schedule payment within that window.
Example: “Net 7 — due September 8, 2026.”
Net 15
Net 15 provides a 15-day window. It gives clients more processing time without extending the due date to a full month. It can fit ongoing work when both sides want a predictable mid-month cycle.
Example: “Net 15 — due September 16, 2026.”
Net 30
Net 30 gives the client 30 days. Larger organizations may request it because invoices move through purchase orders, approvals, and scheduled payment runs. Ask for the exact billing contact and any vendor-portal or PO requirement before assuming that a 30-day term is enough.
Example: “Net 30 — due October 1, 2026.” For the broader workflow, see How to Invoice Corporate Clients.
Which Payment Term Should You Use?
There is no universally best term. Choose one by checking:
- What the client accepted in the proposal or contract
- How long the client's approval and payment process actually takes
- Whether you collected a deposit or invoice by milestone
- How much cash-flow risk you can carry
- Whether local law or industry rules limit the term
Do not change an agreed term only on the invoice. If you want Net 15 for the next project instead of Net 30, negotiate it before the work starts and keep the contract, invoice, and due date aligned.
Set your payment terms once, send clear invoices every time.
BillerBear puts your chosen due date on every invoice and sends automatic reminders when payment is due and overdue.
Create a free invoice →What Does 2/10 Net 30 Mean?
The client can take a 2% discount by paying within 10 days. If they do not, the undiscounted balance is due within 30 days. The agreement should state whether the discount applies to taxes, reimbursable expenses, or only service fees.
Discounts have a real cost to the seller. Compare the amount surrendered with the benefit of receiving cash earlier before offering one. Early Payment Discounts for Freelancers walks through that calculation.
How Late Fees Relate to Payment Terms
A due date does not automatically create a late fee. The fee needs its own clause, and enforceability varies by location, contract, customer type, and amount. Agree on it before invoicing and obtain local legal advice when the stakes justify it.
For example, the UK has statutory rules for interest on some late business-to-business payments, but those rules are specific to that jurisdiction and may change when a contract specifies another rate. (GOV.UK late commercial payments guidance)
Do not copy a percentage from a generic template and assume it is valid everywhere. How Long Should You Wait Before Charging a Late Fee? covers the operational decision after you verify the rule that applies to you.
What to Put on the Invoice
Use a short, unambiguous block:
- Payment terms: Net 15
- Invoice date: September 1, 2026
- Due date: September 16, 2026
- Currency: USD
- Payment method: Bank transfer or the payment link shown below
- Reference: Include Invoice #1042 with payment
If the invoice becomes overdue, send a factual reminder with the invoice number, original due date, balance, and payment instructions. Use the templates in How to Politely Ask for Payment. If a client pays only part, keep the payment attached to the original invoice and show the remaining balance as explained in Partial Payments on Invoices. If you need to split a large balance into scheduled installments beyond standard Net terms, see How to Set Up an Invoice Payment Plan.
The Practical Rule
Define the term in the agreement, show the exact calendar due date on the invoice, and confirm that the client's payment process can meet it. The label tells you the window. The date tells everyone when payment is actually due.
Once you know that date, Freelance Cash Flow Forecasting can help you turn invoice schedules into a week-by-week plan.
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