Invoice payment terms explained (Net 30, due on receipt & more)

Payment terms tell your customer how long they have to pay and on what basis. Clear terms get you paid faster and avoid awkward chasing. Here’s what the common ones mean.

Common payment terms

Term	What it means
Due on receipt	Payment is expected as soon as the invoice arrives
Net 7 / 14 / 30	Pay the full amount within 7, 14 or 30 days of the invoice date
EOM	Payment due by the end of the month the invoice was issued
50% upfront	A deposit before work starts, the balance on completion
Stage payments	The job is billed (and paid) in agreed stages

Net 30 is common with larger or corporate customers; smaller jobs are often due on receipt or Net 7/14.

Always show a due date

Whatever basis you use, state the actual due date on the invoice — “Payment due by 14 July 2026” leaves no room for confusion. The generator works the due date out from your terms automatically.

The statutory default

If you sell to another business and don’t agree any terms, the law sets a default of 30 days to pay. Miss that and you can add statutory interest and a fixed charge — see charging interest on late payments, or work it out with the late payment calculator.

Deposits and upfront payment

For larger jobs or new customers, asking for a deposit or payment upfront protects your cash flow. Send a proforma invoice to request an advance payment, then issue the proper invoice once the work is done.

Tips for getting paid on time

• Put your bank details on every invoice
• Invoice promptly — the clock usually starts at the invoice date
• Send a polite reminder as the due date approaches
• Consider a late-payment clause so your terms are clear upfront