Invoice Payment Terms Explained: Net 30, Due on Receipt

What Net 7, Net 30, due on receipt, and other invoice payment terms mean, which get you paid fastest, and the exact wording to put on your invoice.

By the Invoiceflint team · Updated October 31, 2026

Payment terms tell your client when an invoice must be paid and how. Clear terms are one of the simplest ways to get paid on time: they set a deadline, give you a fair point to follow up, and avoid the awkward 'when did you need this by?' conversation.

Common invoice payment terms

Term	What it means	Typical use
Due on receipt	Payment is expected as soon as the client receives the invoice.	Small jobs and one-off customers
Net 7	Payment is due 7 days after the invoice date.	Freelancers and trades who want fast payment
Net 15	Payment is due 15 days after the invoice date.	Small business clients
Net 30	Payment is due 30 days after the invoice date.	Larger companies with accounts payable teams
Net 60 / Net 90	Payment is due 60 or 90 days after the invoice date.	Large enterprises and some public-sector clients
EOM (end of month)	Payment is due at the end of the month the invoice is issued.	Clients who pay suppliers in a monthly batch
50% upfront	Half is paid before work starts, the balance on completion.	Projects, custom work, and jobs with expensive materials
2/10 Net 30	A 2% discount if paid within 10 days; otherwise the full amount is due in 30.	Encouraging early payment from business clients

Which payment terms should you use?

Shorter terms generally get paid sooner. 'Net' terms count from the invoice date, not the date the work finished — so the faster you send the invoice, the faster the clock starts.

Homeowners and individual customers: due on receipt or Net 7. They pay personally and don't have a payment cycle to wait for.
Small business clients: Net 7 or Net 15.
Larger companies: ask what their standard terms are before you start. Many only pay on Net 30 and will need a purchase order (PO) number on your invoice.
Long or expensive projects: a deposit upfront, then invoices at agreed milestones.

'Due on receipt' vs. a specific date

'Due on receipt' sounds urgent, but many clients read it as 'whenever'. A specific due date — 'Due November 14' — is harder to ignore and gives you a clear day to follow up. Invoiceflint lets you set the due date on each invoice and flags invoices automatically once they're overdue.

How to write payment terms on an invoice

Put the due date near the total, where the client's eye lands.
List the payment methods you accept and the details needed to pay.
If you charge a late fee, state it — and make sure it was agreed before the work started.
Show any deposit already paid so the balance due is unambiguous.

Example payment terms

Payment due within 7 days (by November 14). Pay by bank transfer to [account details]. A late fee of 1.5% per month applies to balances more than 30 days overdue.

Tip: Agree on payment terms before you start the work, not when you send the invoice. Put them on your estimate so the client has already accepted them.