Guide
Invoice payment terms explained
Updated November 4, 2026
The short answerInvoice payment terms say when payment is due. “Net 30” means the full amount is due 30 days after the invoice date; “due on receipt” means pay immediately. Shorter terms such as net 7 or net 15 bring cash in faster, while net 30 and net 60 are common with larger companies.
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Common payment terms
- Due on receipt: payment is due as soon as the customer gets the invoice
- Net 7, net 15: due 7 or 15 days after the invoice date
- Net 30: due 30 days after the invoice date, the most common default
- Net 60 and net 90: longer terms, usually asked for by large organisations
- 2/10 net 30: a 2% discount if paid within 10 days, otherwise the full amount in 30
How to choose
Choose the shortest terms your customers will accept. Individuals and small clients usually pay quickly on receipt or net 7. Companies with an accounts payable process often expect net 30. Memberships and rent are normally due at the start of the period.
Make the terms impossible to miss
Put the due date on the invoice as a date, not only as “net 30”, and repeat it in the email. If you charge late fees or offer an early-payment discount, say so on the invoice and in your agreement. Rules about late fees vary by country, so check what applies.
Setting terms in Invoicadence
Set a default number of days in your settings and every new invoice uses it. Tell the assistant “net 14” or “due in 10 days” for a single invoice, or give an exact date when you need one.
Frequently asked questions
What does net 30 mean?
Net 30 means the full invoice amount is due 30 days after the invoice date.
What does due on receipt mean?
It means payment is due as soon as the customer receives the invoice.
What does 2/10 net 30 mean?
The customer can take a 2% discount by paying within 10 days. Otherwise the full amount is due within 30 days.
Which payment terms are best for freelancers?
Shorter terms, such as due on receipt, net 7 or net 14, help cash flow. Use net 30 when a larger client requires it.
Can I set different terms per customer?
Yes. Ask for the terms on each invoice, or set a plan's terms for a recurring customer.
Set terms once and stop thinking about it
Choose a default and every invoice gets the right due date.
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