Invoice payment terms explained: Net 30, Due on receipt and more

Common payment terms

• Due on receipt: pay as soon as the invoice arrives.
• Net 7, Net 15, Net 30, Net 60: pay within that many days of the invoice date.
• EOM (end of month): pay by the end of the month the invoice is dated in. "Net 30 EOM" means 30 days after month end.
• 2/10 Net 30: take 2% off if paid within 10 days, otherwise the full amount within 30 days.
• CIA / CWO: cash in advance or cash with order, before work starts.
• Deposit or advance: a share up front (for example 50%) and the balance on completion.

Which terms to choose

Shorter terms mean faster cash. Freelancers and small businesses often use "Due on receipt" or Net 7 for individuals and Net 15 to Net 30 for companies. Large companies may insist on Net 45 or Net 60; ask for a deposit on big jobs.

Know your rights on late payment

Several countries set limits or let you charge interest on late business payments. Examples: statutory interest under the UK's late payment law, and India's MSMED Act, which caps terms at 45 days for registered micro and small enterprises. Check the rule where you and your client are.

Wording you can copy

• "Payment due within 15 days of the invoice date (by 30 November 2026)."
• "Please include the invoice number as the payment reference."
• "Late payments may incur interest as allowed by law."
• "A 50% deposit is due before work starts; the balance is due on delivery."

Set them once

In Fliss Invoice, choose your default terms in Settings. Every invoice gets the due date worked out, overdue invoices are flagged, and reminders can go out automatically.